Dhaka, Bangladesh (BBN) - The Securities and Exchange Commission (SEC) will not extend the deadline on share purchase by sponsors and directors of listed companies who individually hold less than 2.0 percent and jointly less than 30 percent in their own firms.
The stock market regulator expressed its stance on Monday when a delegation of Dhaka Stock Exchange (DSE), led by its newly elected President, Rakibur Rahman, met M Khairul Hossain, SEC chairman.
“The securities regulator will not extend the time of sponsor-directors of listed companies who yet to comply with the minimum requirements in line with SEC’s directive,” Rakibur Rahman told reporters after the meeting.
On November 22 last, the SEC imposed the mandatory provision relating to the sponsor-directors, other than independent ones, for holding individually up to, at least two per cent of their companies’ paid-up capital.
It was found that 1,491 directors of 200 listed companies hold less than 2.0 percent and the sponsors and directors of 38 companies jointly hold less than 30 percent in their own firms.
Up to March, only 298 sponsors and directors announced their plans to buy shares to comply with the regulatory requirements.
Mr. Rahman said the sponsor directors must buy the shares within the deadline, if they want to sit on boards. “If anyone fails to hold the minimum number of shares, he or she should leave the boards,” he noted.
He said the DSE would issue a reminder to the sponsor directors within the next three days who had not yet to buy their shares.
BBN/SSR/AD-03April12-8:20 am (BST)
