MJL to be listed on condition
Wednesday, 23 March 2011
FE Report
The Securities and Exchange Commission (SEC) has paved the way for MJL's (Mobil Jamuna Lubricants) to be listed on the bourses as the latter's authorities have agreed to follow the regulator's condition, officials said. The SEC finalised the issue at its meeting Tuesday with Chairman Ziaul Haque Khondker in the chair, SEC spokesman Mohammad Saifur Rahman said. As per the condition offered by the securities regulator, the MJL authorities will have to pay compensation to its shareholders if the market price goes below the offer price within six months after the date of listing. In that case, a shareholder will get the amount he lost compared to offer price in the initial public offering (IPO) after selling out his share. For example, the offer price of MJL is Tk 152.40. If a shareholder sells out his share at Tk 100 due to fall of market price within six months of listing, the MJL authorities are bound to pay a compensation of Tk 52.40 to the shareholder. "The securities regulator has also directed the bourses to execute the listing of MJL as per securities laws as early as possible," Mr Rahman mentioned.
The Securities and Exchange Commission (SEC) has paved the way for MJL's (Mobil Jamuna Lubricants) to be listed on the bourses as the latter's authorities have agreed to follow the regulator's condition, officials said. The SEC finalised the issue at its meeting Tuesday with Chairman Ziaul Haque Khondker in the chair, SEC spokesman Mohammad Saifur Rahman said. As per the condition offered by the securities regulator, the MJL authorities will have to pay compensation to its shareholders if the market price goes below the offer price within six months after the date of listing. In that case, a shareholder will get the amount he lost compared to offer price in the initial public offering (IPO) after selling out his share. For example, the offer price of MJL is Tk 152.40. If a shareholder sells out his share at Tk 100 due to fall of market price within six months of listing, the MJL authorities are bound to pay a compensation of Tk 52.40 to the shareholder. "The securities regulator has also directed the bourses to execute the listing of MJL as per securities laws as early as possible," Mr Rahman mentioned.