SEC issues directive to enlist MI Cement
Wednesday, 27 April 2011
FE Report
The share market regulator -- the Securities and Exchange Commission (SEC) Tuesday issued a directive to the bourses to enlist MI Cement as soon as possible. The SEC issued the directive after a special meeting held at the SEC board room chaired by SEC chairman Ziaul Haque Khondker. On Sunday, the SEC in principle agreed to accept MI Cement proposal for listing in the share market, though conditionally after a tri-partite meeting held among the SEC, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Earlier, the SEC set a condition for the listing of MI Cement to buy the shares of intending shareholders if the market price of the company goes down below offer price within six months from the date of listing. MI Cement proposed to compensate shareholders from its directors' money if the prices of its shares went below the listing price. As per regulatory condition, MI Cement will create a fund of Tk 50 million for the compensation of its shareholders. The company will also make a mortgage of 25 per cent shares (7.5 million) of company directors to DSE, so that the bourse can make compensation to the shareholders by selling these shares. In that case, the SEC will ease the lock-in period on the shares of company directors.
The share market regulator -- the Securities and Exchange Commission (SEC) Tuesday issued a directive to the bourses to enlist MI Cement as soon as possible. The SEC issued the directive after a special meeting held at the SEC board room chaired by SEC chairman Ziaul Haque Khondker. On Sunday, the SEC in principle agreed to accept MI Cement proposal for listing in the share market, though conditionally after a tri-partite meeting held among the SEC, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Earlier, the SEC set a condition for the listing of MI Cement to buy the shares of intending shareholders if the market price of the company goes down below offer price within six months from the date of listing. MI Cement proposed to compensate shareholders from its directors' money if the prices of its shares went below the listing price. As per regulatory condition, MI Cement will create a fund of Tk 50 million for the compensation of its shareholders. The company will also make a mortgage of 25 per cent shares (7.5 million) of company directors to DSE, so that the bourse can make compensation to the shareholders by selling these shares. In that case, the SEC will ease the lock-in period on the shares of company directors.