Actions await directors without minimum stakes
The stockmarket regulator has started a process to penalise the parties who violated its directive on minimum shareholding by sponsors and directors.
The regulator has recently asked the secretaries of 20 listed firms, which did not submit their shareholding status within the stipulated time, to explain their position at a hearing before a regulatory panel.
After that, the regulator will also ask the sponsors and directors, who remain in their own firms' boards without holding the required number of shares, to appear before the panel, officials said.
Still 35 sponsors and directors of 14 companies remain as members of their respective boards without having 2 percent stakes.
The Bangladesh Securities and Exchange Commission, the regulator, prepared the list of these companies in November last year.
But the number might be higher as the BSEC did not have shareholding information of another 20 companies.
Saifur Rahman, the spokesman of the BSEC, said the enforcement actions against them are in process.
“After the hearing, the panel will submit a report to the commission to take a final decision,” he said, adding that the decision would be either imposing penalties or filing 'certificate case' or releasing the persons from the allegations.
The BSEC, in a notice in November 2011, made it compulsory for sponsors, directors and promoters to acquire at least 2 percent stake individually and a 30 percent stake jointly in their firms.
The regulator gave a six-month time until May 21 of 2012 to acquire the minimum number of shares.
In case of failure, sponsors, directors or promoters were supposed to be removed from the key positions, especially the boards.
The BSEC in September 2012 instructed all listed firms to provide their shareholding status to the commission within November 15 of the same year.
Of the companies, 14 did not reply to the regulator, while the rest six sought time extension.
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