May 17, 2012

Small investors protest precession in front High Court

Small investors protest precession in front  High Court


A group of retail stock investors demonstrated on Wednesday before the High Court against writ petitions of directors of several companies seeking a stay order on a Securities and Exchange Commission (SEC) circular after the great market
crash. The circular specified holding minimum number of shares for directors and sponsors of companies listed on the capital market to make a support for the market. The bench of justices Farid Ahmed and Sheikh Hassan Arif began hearing the petitions at noon and market shows very unstable movement. Up to 40 investors, under the umbrella of Bangladesh Capital Market Investors Unity, gathered in front of the High Court gate around 12:15pm and showed their protest.  The investors demanded measures to strengthen SEC to look after the interest of the retail investors. The platform's chief Mizan-ur-Rashid Chowdhury hoped the court will not deliver any verdict that would go against the interest of the people. On Nov 22 last year, the SEC had issued the circular saying sponsor-directors of each listed company together must hold at least 30 percent of the paid-up capital. The minimum share holding by individual directors was set at 2 percent. It gave six months to fulfil the requirements. The deadline would end on May 21. On Apr 8, one Sheikh Abdul Momin, who applied to be a director of the National Credit and Commerce Bank Limited (NCCBL), had filed a writ petition challenging the legality of the circular. Earlier on Monday, the court fixed Wednesday for the hearing when his lawyer Fida M Kamal presented his plea. The High Court had heard the petition and issued a rule. The Finance Secretary, Commerce Secretary, SEC Chairman, Bangladesh Bank Governor, NCCBL Managing Director, the Registrar of Joint Stock Companies and Firms, and Dhaka Stock Exchange and Chittagong Stock Exchange had been ordered to respond within four weeks.The court also granted the plea of Barrister Rafiq-ul Haque, the lawyer for 11 directors of Delta Life Insurance, to hold a hearing on Wednesday on similar petition filed by his clients.
Source: Media News