Five-point action plans for turnaround
Live Correspondent: Dhaka Stock Exchange (DSE) on Thursday submitted five proposals to the Bangladesh Securities and Exchange Commission (BSEC) for capital market development.
The proposals were finalized at a board meeting of the prime bourse on Wednesday. The objectives of proposals are to establish good governance, strengthening investors’ confidence and long-term stability for the market, a DSE director said.
DSE Managing Director K A M Majedur Rahman told the Dhaka Tribune, “We have submitted some proposals for stock investors. The BSEC chairman is positive about implementing the proposals. Hopefully the market will be positive very soon.”
According to the proposal on pre-IPO placement, companies shall not issue more than 25% of their paid-up capital through private placement, introducing one year lock-in provision for placement holders, instead of current three-year tenure and keeping the number of pre-IPO Placement holders to 50.
Currently, there remain no specific directives on the amount of pre-IPO placement, paving way for many companies to collect fund through placement of majority shares.
The proposal categorically sought the enforcement of rules that made holding of 2% share by any company director, and 30% stake by sponsors and directors of a listed firm.
Dhaka, 28 April(campuslive24.com)//MI