Normal trading of UCBL set to start soon
Friday, 16 April 2010
Mohammad Mufazzal
The normal trading of the United Commercial Bank Limited (UCBL) is likely to start soon as both the bank and the securities regulator are positive about resumption of its trading in the market.
The optimism ensued after the verdict delivered by the Appellate Division (AD) of the Supreme Court (SC) on April 7 which cleared the bar of organising annual general meetings (AGMs) of the bank.
Thus the bank is now looking towards the certified copy of the SC verdict to organise an AGM.
"We want to get rid of cumulative pressure on organising the AGM. It's not possible without having the certified copy of the SC verdict," Shahjahan Bhuiyan, managing director of the UCBL told the FE.
"After having the certified copy we will organise the AGM within a very short span of time," he said.
Meanwhile investors said the UCBL chairman is also positive about the AGM.
"When we had a meeting with him recently, the chairman assured us of organising the AGM as early as possible in accordance with the verdict," Faqrul Alam, a general investor, said.
Dhaka Stock Exchange (DSE) said the normal trading of UCBL depends on the decision of the Securities and Exchange Commission (SEC).
"The SEC sent the UCBL to the Over-the-Counter (OTC) market by a directive. That's why it is the SEC which can take it back to normal trading. When the SEC will tell us to start the normal trading, we will just place the UCBL in our trading system," an official of the DSE told the FE, requesting not to be named.
"The bank has to apply to the SEC for coming back to normal trading. On the basis of their application the SEC will go for action regarding its normal trading," he said.
The SEC has expressed its positive opinion to start the normal trading of the UCBL as the bank is not a company to be traded in the OTC market like other poor companies with poor fundamentals.
"We sent the UCBL to the OTC market as we were helpless because of the writ petition. After the legal settlement we must help the company to be traded in the normal market," SEC member Mansur Alam told the FE.
The UCBL could not pay dividends for failing to hold the pending AGMs for the last 11 years because of cases filed by shareholders.
On October 1 last year, the SEC in a directive sent the UCBL to the OTC market along with 50 other companies under the SEC Rules, 2001.
But no shareholder placed the sale order of the UCBL shares in that market. They were highly optimistic about the bank's coming to the normal market.
The normal trading of the United Commercial Bank Limited (UCBL) is likely to start soon as both the bank and the securities regulator are positive about resumption of its trading in the market.
The optimism ensued after the verdict delivered by the Appellate Division (AD) of the Supreme Court (SC) on April 7 which cleared the bar of organising annual general meetings (AGMs) of the bank.
Thus the bank is now looking towards the certified copy of the SC verdict to organise an AGM.
"We want to get rid of cumulative pressure on organising the AGM. It's not possible without having the certified copy of the SC verdict," Shahjahan Bhuiyan, managing director of the UCBL told the FE.
"After having the certified copy we will organise the AGM within a very short span of time," he said.
Meanwhile investors said the UCBL chairman is also positive about the AGM.
"When we had a meeting with him recently, the chairman assured us of organising the AGM as early as possible in accordance with the verdict," Faqrul Alam, a general investor, said.
Dhaka Stock Exchange (DSE) said the normal trading of UCBL depends on the decision of the Securities and Exchange Commission (SEC).
"The SEC sent the UCBL to the Over-the-Counter (OTC) market by a directive. That's why it is the SEC which can take it back to normal trading. When the SEC will tell us to start the normal trading, we will just place the UCBL in our trading system," an official of the DSE told the FE, requesting not to be named.
"The bank has to apply to the SEC for coming back to normal trading. On the basis of their application the SEC will go for action regarding its normal trading," he said.
The SEC has expressed its positive opinion to start the normal trading of the UCBL as the bank is not a company to be traded in the OTC market like other poor companies with poor fundamentals.
"We sent the UCBL to the OTC market as we were helpless because of the writ petition. After the legal settlement we must help the company to be traded in the normal market," SEC member Mansur Alam told the FE.
The UCBL could not pay dividends for failing to hold the pending AGMs for the last 11 years because of cases filed by shareholders.
On October 1 last year, the SEC in a directive sent the UCBL to the OTC market along with 50 other companies under the SEC Rules, 2001.
But no shareholder placed the sale order of the UCBL shares in that market. They were highly optimistic about the bank's coming to the normal market.