No.SEC/CMRRCD/2001-12/ 308 Dated:
Whereas, in the interest of the investors in securities and the capital market, it has been considered to be expedient that further amendments should be made in the Settlement of Stock Exchange Transactions Regulations, 1998 of the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd.;
Now, therefore, in exercise of the power conferred by section 34, sub-section (4), of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Securities and Exchange Commission (SEC) hereby directs the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. to amend relevant provisions of the said Regulations of the exchanges for giving effect to the following from the first trading day commencing on the 1st June 2004, namely:-
(a) In case of a company already placed in A or B-category, its share shall be placed in Z- category from the next day of submission, or expiry of the date of submission, of the requisite compliance report to SEC, if it is found that the company has failed either to pay off the declared dividend or to submit the said report thereon within the time limits prescribed in the erstwhile CCIs Notification No. SRO.385-Law/91 dated 15th December 1991, read together with section 2G of the Securities and Exchange Ordinance, 1969 (XVII of 1969), for whatsoever reason.
(b) In case of a company already placed in Z-category and declares dividend, its share shall be placed in A or B-category, as the case may be, from the next day of submission of the requisite compliance report to SEC confirming paying off the declared dividend within the time limits prescribed in the Notification mentioned at (a) above:
Provided that there is no defaulted annual general meeting of that company.
Other relevant provisions of the said Regulations shall simultaneously be revised by the said exchanges on the basis of above amendments.
By order of the Commission
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.