Dhaka, Bangladesh (BBN) - The Dhaka Stock Exchange has reminded sponsors and directors of listed firms of the May 22 deadline for raising their stake in their firms to a certain level in line with a regulatory requirement.
The sponsors, directors and promoters will have to raise their stake to a minimum of two percent individually and 30 percent jointly in their own companies by the deadline.
The Securities and Exchange Commission gave the six-month deadline on November 23 last year for those who individually hold less than 2 percent and jointly less than 30 percent stake in their own firms.
The DSE issued a letter to the managing directors and chief executive officers of the listed firms to meet the requirements soon.
“In this regard we remind you that the stipulated time to comply with the above requirement is going to expire on May 21, 2012,” the DSE letter said.
“We request you to bring the above stipulation to the kind attention of your directors and sponsors who are still holding shares below the aforesaid requirement of the SEC,” it noted.
The SEC directive came as 1,491 directors of 200 listed companies were holding less than 2 percent and sponsors and directors of 38 companies were jointly holding less than 30 percent stake in their own firms.
Until March, only 298 sponsors and directors announced their plans to buy shares to comply with the directive.
BBN/BB/SI-05Apr12-12:30 am (BST)
