BSEC decides to review some provisions

FE Report | Published: April 30, 2019 00:13:22

The securities regulator decided on Monday to take several steps for the betterment of the stock market.
The steps included reviewing the existing provision for requirement of holding of minimum shares (2.0 per cent) for becoming sponsors directors of any listed companies.
The Bangladesh Securities and Exchange Commission (BSEC) also decided that no prior permission would be required from the BSEC for issuing shares under private placement.
Besides, a minimum of Tk 500 million needs to be raised through initial public offering (IPO) under the fixed price method while the minimum size of IPO under book-building method will be Tk 1.0 billion, it said.
The decisions were taken at a meeting of the BSEC with the stakeholders, including the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and merchant bankers, at the BSEC office in the city.
The meeting also decided that the IPO quota for institutional investors would be scrapped unless they discharge their responsibilities accordingly.
The provision regarding the existing one-year lock-in period for placement shares will remain in force from the date of debut trading of the company's shares, according to the decisions.
Listed companies will also require to explain the reasons for raising funds through issuing stock dividend, said the BSEC.
The decisions were taken as per the directives issued by Prime Minister Sheikh Hasina at her meeting with the finance minister, Bangladesh Bank governor and BSEC chairman, which was held at the PMO's office on Sunday.