The DSE has recommended that sponsor directors of all listed companies should hold at least 30 percent stake, and those below the level buy back in six months their shares form block market.
In a meeting on Monday evening, the board of directors of the Dhaka Stock Exchange took decisions that would have an impact on some of Bangladesh's biggest players in the business of stock.Shakil Rizvi, the DSE president, told reporters after the meeting, that the board had decided to dissolve all but audit and demutualisation committees need more time.
The listing committee, perhaps the most powerful one with authority to virtually approve IPO process, was one of the dozen or so DSE wings that stood dissolved after the Monday evening's meeting with regulator.
The DSE meeting came after the indices plunged to new lows over the past week leading to streets protests and then intervention from the prime minister. On Wednesday night, Sheikh Hasina chaired a high-profile meeting that resulted in decisions to prop up the market prices. The DSE board recommend that there be a mandatory provision for all company sponsor directors that they hold at least 30 % stake.
According to the DSE proposals meant for SEC clearance, those holding below 30 percent in any listed company should bring their holding up to 15 percent in three months, and the rest in six months and no share sale in public market.
This would mean sponsor directors of many major companies would have to buy back shares they had sold at high profits at the current market prices in public market.
Failing to do so, these sponsor directors would lose their control on management of companies they own not even 15 percent in many cases and 5% stake holder will also get chance to include in management.
According to the DSE proposal, any investor holding at least five percent shares—by acquisition or otherwise—will be eligible for a seat on the board of directors of that company for participation.
Each company will have to nominate at least one director from among general shareholders to give the mentioned privilege.
From now on, the sponsor directors should only be allowed to sell shares through 'block market', and not through normal public market.
The companies which sold shares through direct listing must buy back if the market prices of those securities fell below the issue price. The DSE proposals would now require the SEC regulatory approval.
The DSE also proposed to relax certain rules for commercial banks trading in the stock market which earlier bared. When calculating the banks' exposure, the board suggested that the market price or cost price –whichever would be lower—be taken into account for calculation. At present, the cost price or market price—whichever is higher—provides the basis for such calculation for Accounts.
Let see how the investor react with all the good steps.
In a meeting on Monday evening, the board of directors of the Dhaka Stock Exchange took decisions that would have an impact on some of Bangladesh's biggest players in the business of stock.Shakil Rizvi, the DSE president, told reporters after the meeting, that the board had decided to dissolve all but audit and demutualisation committees need more time.
The listing committee, perhaps the most powerful one with authority to virtually approve IPO process, was one of the dozen or so DSE wings that stood dissolved after the Monday evening's meeting with regulator.
The DSE meeting came after the indices plunged to new lows over the past week leading to streets protests and then intervention from the prime minister. On Wednesday night, Sheikh Hasina chaired a high-profile meeting that resulted in decisions to prop up the market prices. The DSE board recommend that there be a mandatory provision for all company sponsor directors that they hold at least 30 % stake.
According to the DSE proposals meant for SEC clearance, those holding below 30 percent in any listed company should bring their holding up to 15 percent in three months, and the rest in six months and no share sale in public market.
This would mean sponsor directors of many major companies would have to buy back shares they had sold at high profits at the current market prices in public market.
Failing to do so, these sponsor directors would lose their control on management of companies they own not even 15 percent in many cases and 5% stake holder will also get chance to include in management.
According to the DSE proposal, any investor holding at least five percent shares—by acquisition or otherwise—will be eligible for a seat on the board of directors of that company for participation.
Each company will have to nominate at least one director from among general shareholders to give the mentioned privilege.
From now on, the sponsor directors should only be allowed to sell shares through 'block market', and not through normal public market.
The companies which sold shares through direct listing must buy back if the market prices of those securities fell below the issue price. The DSE proposals would now require the SEC regulatory approval.
The DSE also proposed to relax certain rules for commercial banks trading in the stock market which earlier bared. When calculating the banks' exposure, the board suggested that the market price or cost price –whichever would be lower—be taken into account for calculation. At present, the cost price or market price—whichever is higher—provides the basis for such calculation for Accounts.
Let see how the investor react with all the good steps.
