SEC seeks info from companies on directors' holdings

The Securities and Exchange Commission has instructed the country's twin bourses to gather information on the shareholding status of sponsors and directors of listed firms.
In separate letters to the Dhaka and Chittagong stock exchanges on Wednesday, the SEC also prescribed a form to put the collected information in it, and asked the bourses to submit a report by July 15.
The stockmarket regulator's move came after a day when the commission rejected the directors' appeals to extend time to comply with a rule on minimum shareholding.
The SEC in a meeting on Tuesday said the sponsors and directors, who had less than 2 percent shares individually and 30 percent jointly in their own firms as of May 21, will not be allowed to sit on the boards any more.
However, according to primary data available from the premier bourse, some 350 sponsors and directors of listed companies will lose their directorships, as they have failed to acquire the required percentage of shares within May 21.
After issuance of the directive on minimum shareholding, 1,330 sponsors and directors in 231 listed companies were found holding less than 2 percent stakes in their own firms.
Of them, 980 people got the required amount of shares either through purchasing from the secondary market or as gift from their close relatives.