One year lock-in imposed on private placement shares in Bangladesh

Last updated: October 2, 2011

Dhaka, Bangladesh (BBN)- The Securities and Exchange Commission (SEC) on Sunday published a notification on the distribution of private placement shares with imposing one-year lock-in on the allotment letters.

The securities regulator has imposed one year lock-in on the allotment letters, from the date of issuance, meaning that these letters cannot be transferred or sold to others before the completion of lock-in period.

Sponsor or promoter group should maintain a post issue shareholding of 30 per cent of the company's total paid-up capital, at least for three years from the date of regulator's consent.

As per the approved guideline on placement shares, a company will be allowed to raise its proposed capital from not more than hundred investors, including institutional investors.

At the same time, a complete list of subscribers should be submitted to the SEC within 15 days of closing subscription along with the copy of allotment letters.

BBN/SSR/AD-03Oct11-1:48 am (BST) 

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