SEC body for keeping direct listing open to pvt firms with good records
Wednesday, 11 November 2009
FE Report
The consultative committee of the Securities and Exchange Commission (SEC) proposed Tuesday to keep the door open of the existing Direct Listing Regulations for the private companies with good fundamentals to float shares in the stock markets.
The consultative committee also made a proposal to bring down the maximum face value of a share to Tk 10 with a view to ensuring participation of a greater number of small investors in share trading.
"The proposal will be placed in the next meeting
of the commission," Mansur Alam, a member of the SEC, told the FE.
"It will be applicable to all companies to be listed in future," he added.
The committee also proposed that the size of a mutual fund in future must be Tk. 1.00 billion if any such fund wants to go for pre-IPO placement.
However, it also proposed to make a mechanism for stopping wild fluctuation of share prices of those companies on the debut day.
The proposals came against the backdrop of the Dhaka Stock Exchange's (DSE) recent decision not to list the private companies with the bourse.
"The committee proposed to continue the existing Direct Listing Regulations for private firms with good fundamentals," said Mansur Alam.
"The committee wants to ensure participation of those companies for the betterment of stock market," added.
The consultative committee of the Securities and Exchange Commission (SEC) proposed Tuesday to keep the door open of the existing Direct Listing Regulations for the private companies with good fundamentals to float shares in the stock markets.
The consultative committee also made a proposal to bring down the maximum face value of a share to Tk 10 with a view to ensuring participation of a greater number of small investors in share trading.
"The proposal will be placed in the next meeting
of the commission," Mansur Alam, a member of the SEC, told the FE.
"It will be applicable to all companies to be listed in future," he added.
The committee also proposed that the size of a mutual fund in future must be Tk. 1.00 billion if any such fund wants to go for pre-IPO placement.
However, it also proposed to make a mechanism for stopping wild fluctuation of share prices of those companies on the debut day.
The proposals came against the backdrop of the Dhaka Stock Exchange's (DSE) recent decision not to list the private companies with the bourse.
"The committee proposed to continue the existing Direct Listing Regulations for private firms with good fundamentals," said Mansur Alam.
"The committee wants to ensure participation of those companies for the betterment of stock market," added.