- March 2002
|Lock- in on private placement, etc.: With a view to
encouraging the small investors in primary market, the Securities and
Exchange Commission (SEC) has decided to waive the lock-in on private
placement shares for a company coming with a minimum Tk. Five crore
paid-up capital and if it offers at least 60 percent of the capital to
general public for subscription through initial public offering (IPO). SEC
has also decided to bar companies from raising funds if the name of any of
their sponsor or director or sister organization appears on the list of
Credit Information Bureau (CIB) report of the central bank. SEC has also
decided to change criteria of Z category companies, enabling them to
upgrade their status by simply declaring dividend on the current year’s
performance and holding AGM regularly.
|Bonus share: SEC has decided to absolve the listed companies to
obtain SEC permission prior to offering bonus shares.
|Trustee of BRAC Bond: The Securities and Exchange Commission (SEC) has
decided in principle to allow AIMS of Bangladesh Ltd. to be a trustee of
Special Vehicle Purpose (SVP) Trust of BRAC Securitised
Bond. Its permission is subject to the AIM’s obtaining no
objection certificate (NOC) from the trustees of AIMS First Guaranteed
|Delegation of ICMAB: A delegation of the Institute of Cost and
Management Accountants of Bangladesh (ICMAB) headed by its president Mr.
Rafiq Ahmad met Mr. Manir Uddin Ahmad, Chairman, Securities and Exchange
Commission (SEC) and the members and executives of SEC. They discussed
about the role of cost and management accountants in the capital market.
|1996 Share Scam: The Securities and Exchange Commission (SEC) has
formed two separate committees comprising the officers of the regulatory
body to carry out detailed
investigation about the unfinished task of the previous committee on 1996
share scam. SEC member Mr. K. Iftikhar Ahmed has been made convener of the
|Frequent changes in grades of companies: The Securities and
Exchange Commission (SEC) has constituted an inquiry committee to
investigate the frequent changes in the categories of the listed companies
at the stock exchanges. SEC apprehends some malpractices which could
result in frequent changes in grades which forces rise or fall in the
share prices at the stock exchanges on declaration of minimum dividend or
no dividend at all by the companies.
|SEC approves OTC trading on DSE and CSE: The Securities and
Exchange Commission (SEC) has given approval to the Dhaka Stock Exchange (DSE)
and Chittagong Stock Exchange (CSE) for launching over the counter (OTC)
Direct Listing of shares: The first ever direct listing of shares of
Square Textile Ltd. landed on the DSE trading with a big bang on January
24, 2002 with the price hitting Tk. 29.30 against its face value of Tk. 10
per share. With the beginning of trade, the buyers responded to the bid of
Tk. 18.00 sale offer which later rose to Tk. 29.30.
|Trading of preferential shares begin on DSE: For the first time in
Bangladesh, trading of preferred shares promising 15 percent
guaranteed cumulative dividend to investors began on the DSE. The
company, Beach Hatchery Ltd., has raised Tk. 8 crore from the market; Tk.
5 crore in pre-IPO (Initial Public Offering) and Tk. 3 crore through IPO.
Ahmed Iqbal Hasan has been elected uncontested as the Chairman of the
Dhaka Stock Exchange Ltd. for the year 2002. Mr. Abdul Haque and Mr.
Khwaja Ghulam Rasul have been elected uncontested as the Senior Vice-
Chairman and Vice-Chairman respectively of the bourse for the year 2002.
|Annual General Meeting: The 40th Annual General Meeting of
Dhaka Stock Exchange Ltd. was held on 28 March, 2002. A large number of
members attended the meeting which
was presided over by the outgoing Chairman Mr. Md. Shahiq Khan. The
members present unanimously approved all the agenda of the meeting,
including the audited accounts and balance sheet for the year 2000-2001 of
CDBL’s presentation: Central Depository Bangladesh Ltd.(CDBL) and its
system provider CMC India Ltd. presented a demonstration on Business Rules
Specification on 13 February, 2002 to the CSE Members at the CSE
conference hall, Chittagong.
|Internet trading: The Chittagong Stock Exchange (CSE) is all set
to launch stock trading on the Internet. With the launching of Internet
trading the country will enter the cross border trading as the bourse will
facilitate trading from anywhere in the world.