SEC okays proposal of not allowing share price face value below Tk 10
Wednesday, 13 May 2009
FE Report
The Securities and Exchange Commission (SEC) has approved the proposal of the prime bourse on restriction of floatation of share having face value below Tk 10 by any public limited company (PLC).
The approval came at a SEC meeting held recently with newly appointed SEC chairman Md Ziaul Haque Khondker in the chair.
This decision will be applicable for the forthcoming initial public offerings (IPOs)," said Md Anwarul Kabir Bhuiyan, executive director of the SEC.
Grameenphone (GP) that has fixed its share face value at Tk 1.0 sees no problem in re-fixing the price as per the SEC decision.
"We have no other options but to abide by the SEC rules," said an official of GP.
Earlier, the country's largest mobile phone operator GP proposed to raise a total of $125 million, of which $ 65 million (Tk 4.49 billion) will be raised through IPO, offering the face value at Tk 1 for each share.
The Dhaka Stock Exchange (DSE) proposed to the SEC for fixing the face value at a minimum Tk 10, noting that there was enough scope to manipulate those shares having face value at Tk 1.
The commission also decided not to allow a stockbroker to open more than three branch offices to operate trading activities across the country.
"However, if a stockbroker wants to open more than three branch offices, Tk 5.0 million will be required as additional paid up capital for opening each branch," Bhuiyan said
However, a stock broker will be allowed to open a maximum of 15 branch offices across the country.
The Securities and Exchange Commission (SEC) has approved the proposal of the prime bourse on restriction of floatation of share having face value below Tk 10 by any public limited company (PLC).
The approval came at a SEC meeting held recently with newly appointed SEC chairman Md Ziaul Haque Khondker in the chair.
This decision will be applicable for the forthcoming initial public offerings (IPOs)," said Md Anwarul Kabir Bhuiyan, executive director of the SEC.
Grameenphone (GP) that has fixed its share face value at Tk 1.0 sees no problem in re-fixing the price as per the SEC decision.
"We have no other options but to abide by the SEC rules," said an official of GP.
Earlier, the country's largest mobile phone operator GP proposed to raise a total of $125 million, of which $ 65 million (Tk 4.49 billion) will be raised through IPO, offering the face value at Tk 1 for each share.
The Dhaka Stock Exchange (DSE) proposed to the SEC for fixing the face value at a minimum Tk 10, noting that there was enough scope to manipulate those shares having face value at Tk 1.
The commission also decided not to allow a stockbroker to open more than three branch offices to operate trading activities across the country.
"However, if a stockbroker wants to open more than three branch offices, Tk 5.0 million will be required as additional paid up capital for opening each branch," Bhuiyan said
However, a stock broker will be allowed to open a maximum of 15 branch offices across the country.