The country's capital market investors, market players and economists want an early establishment of a separate permanent bench in the High Court (HC) division to help resolve a mounting number of cases involving the listed companies.
"An effective bench would ensure early dispension of justice, enhance liquidity flow and help build confidence among the investors in the country's flourishing capital market," Chief Executive Officer of the country's prime bourse Salahuddin Ahmed Khan told the FE Tuesday.
He said the Dhaka Stock Exchange (DSE) took an initiative in 2004 for the formation of such a bench comprising judges having sufficient knowledge in securities market and listed companies.
"We had forwarded a proposal for setting up the bench to the Securities and Exchange Commission (SEC) at that time when the current finance and planning adviser Dr AB Mirza Azizul Islam was the SEC chairman," the DSE CEO said.
The SEC had proposed a name 'Securities Appellate Tribunal' for the bench and forwarded it to the higher authorities for approval.
But unfortunately it did not get approved, Dr Khan added.
Market sources said, over 100 cases related to listed companies have remained pending before the country's different courts.
Investments worth over Taka several billion have also remained stuck up due to non-settlement of the long-pending cases.
Most of these cases are awaiting disposal in the HC division, General Certificate Court, Dhaka, Joint District Judge Courts, Metropolitan Session Judge Court, Appellate division of the Supreme Court and Chief Metropolitan Magistrate Courts, said a senior SEC official.
The vested quarters usually file cases with different courts to avoid punitive measures against them or regulatory measures by the SEC, resulting in huge financial losses to general investors, it is alleged.
Despite several attempts, the SEC is yet to take necessary punitive measures against the errant listed companies especially belonging to the 'Z category' due to court injunctions.
Besides, trading of shares of different listed companies are also being halted by the stock exchanges frequently following court injunctions resulting in stuck up of huge investments, a senior DSE official said.
The issues that lead to filing of cases are related to holding of annual general meetings (AGMs), issuing right or bonus shares, paying cash dividends and listing fees and non-compliance of relevant regulations.
The United Commercial Bank Ltd (UCBL) could not hold AGMs and disburse dividends for years together because of legal disputes.
Many of the listed mutual funds are now barred from issuing dividends following a court injunction.
Trading of the mutual fund shares faced suspension in the stock markets several days following court injunction.
The Investment Corporation of Bangladesh (ICB) had to withdraw the record dates for entitlement of dividends it declared earlier for its unit fund shareholders due to the court injunction.
A good number of countries including neighbouring India have separate Securities Appellate Tribunal to settle dispute over the issues of listed companies, DSE Senior Vice-President Ahmed Rashid said.
Economist professor Abu Ahmed echoed the similar view over formation of a separate bench in the HC saying it is necessary to augment confidence of the investors.
"It will help settlement of the disputes of listed companies promptly," said Mr Ahmed.
When contacted Tuesday SEC chairman Faruq Ahmad Siddiqi said the commission would scrutinise the pros and cons of the issue of establishing such a tribunal.
