DSE takes tough stand against issuing Tk 1 face value shares
FE Report | Friday, 6 March 2009
Dhaka Stock Exchange (DSE) has taken a strong move not to allow any public limited company (PLC) to float shares with having the face value of Tk 1 to check 'gambling' in the stock tradings.
"We are going to take a tough stand against any proposal for floating shares by any PLC with the face value of Tk 1 and our next board meeting scheduled on Sunday will finalise our decision which will be later placed before the Securities and Exchange Commission (SEC)," a DSE source told the FE Thursday.
Presently AIMS First Mutual Fund, launched in 2000 is the lone issue in the stock market having the face value of Tk 1 each.
Of late Grameenphone has proposed Tk 1 as its face value, however, the GP IPO is yet to be finalized.
DSE, however in mid-September of last year recommended to the market regulator for fixing the face value of each Grameenphone share at Tk 10 instead of the largest mobile phone operator's proposal of Tk 1.
Meanwhile, the SEC in a 'commission meeting' Thursday approved the application of Rupali Life Insurance Ltd for floating shares worth Tk 45 million with the face value of Tk 100 each.
The company with the paid-up capital of Tk 30 million has been allowed to float a total of 4,50,000 shares.
Rupali Life will be the 40th insurance company to be listed on the stock exchanges.
At present, a total of 39 insurance companies are listed on the DSE with issued capital of Tk 5.2 billion with 52,228,142 shares.
A total of eight insurance companies floated shares till February of 2009 since 2007. The companies are Prime Islami Life Insurance, Paramount Insurance, City General Insurance, Continental Insurance, Takaful Islami Insurance, Standard Insurance, Northern General Insurance and Republic Insurance.
"We are going to take a tough stand against any proposal for floating shares by any PLC with the face value of Tk 1 and our next board meeting scheduled on Sunday will finalise our decision which will be later placed before the Securities and Exchange Commission (SEC)," a DSE source told the FE Thursday.
Presently AIMS First Mutual Fund, launched in 2000 is the lone issue in the stock market having the face value of Tk 1 each.
Of late Grameenphone has proposed Tk 1 as its face value, however, the GP IPO is yet to be finalized.
DSE, however in mid-September of last year recommended to the market regulator for fixing the face value of each Grameenphone share at Tk 10 instead of the largest mobile phone operator's proposal of Tk 1.
Meanwhile, the SEC in a 'commission meeting' Thursday approved the application of Rupali Life Insurance Ltd for floating shares worth Tk 45 million with the face value of Tk 100 each.
The company with the paid-up capital of Tk 30 million has been allowed to float a total of 4,50,000 shares.
Rupali Life will be the 40th insurance company to be listed on the stock exchanges.
At present, a total of 39 insurance companies are listed on the DSE with issued capital of Tk 5.2 billion with 52,228,142 shares.
A total of eight insurance companies floated shares till February of 2009 since 2007. The companies are Prime Islami Life Insurance, Paramount Insurance, City General Insurance, Continental Insurance, Takaful Islami Insurance, Standard Insurance, Northern General Insurance and Republic Insurance.