BRAC, the globally reputed NGO will purchase 25 million shares of BRAC Bank.
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday waived the BRAC, a sponsor of BRAC Bank to a section of the securities rules to facilitate the execution of purchasing shares.
BRAC applied to the securities regulator for purchasing 25 million shares of BRAC Bank by November 30 through trading to be executed on the stock exchanges.
BRAC is a leading sponsor of BRAC Bank and holds above 44 per cent shares of the bank as per the financial statement for the year ended on December 31, 2019.
At Wednesday's meeting, the securities regulator waived the BRAC from the compliance of the section 4(2) ofthe Bangladesh Securities and Exchange Commission (prohibition of insider trading) Rules, 1995.
The section bars the sponsors, directors, among others, of listed companies to purchase or sell shares within two months ahead of the year-end.
The prohibition period of purchasing or selling shares continues till the date of approving the company's financials by the board of directors.
The regulatory waiver from prohibition of insider trading rules is required for the bank as it will have to purchase shares ahead of year-end.
BRAC Bank, presently an 'A' category company, was listed with the stock exchanges in 2007.
The company's sponsor-directors hold 44.29 per cent shares, institutes 9.19 per cent, foreigners 37.45 per cent and general investors 9.07 per cent as on September 30, 2020.
At Wednesday's meeting, the securities regulator also approved the rules titled 'Digital Booth (Stock Broker/TREC Holders) Rules, 2020.
Under the rules, TREC (trading right entitlement certificate) holders will be allowed to open digital trading booth at the centres of union and upazilas and business centres of different districts. Digital trading booths will also be allowed abroad.
The rules came as part of the regulatory move to expand the capital market ensuring the participation of mass people at home and abroad.
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