The Dhaka Stock Exchange (DSE) Monday framed eight-point proposal, including making a provision of holding at least 30 per cent stakes by sponsor-directors, to help enhance their accountability to the shareholders in a bid to stabilise the stock market, officials said.
The DSE will submit the proposals to the securities regulator today (Tuesday) for incorporating the same into the stock market stabilisation package.
The officials said the sponsor-directors, who own less than 30 per cent shares, will have to increase their stakes up to the proposed mark within next six months subject to the amendment to Companies Act, 1994.
The stakeholders will have to increase the stakes up to 15 per cent within three months.
DSE President Mohammad Shakil Rizvi made these proposals at a board meeting held Monday at the DSE office.
"Responsibilities of the sponsor-directors will also be increased, if they hold at least 30 per cent shares," Mr Rizvi told the FE.
The other proposals include keeping a provision for selling shares by sponsor-directors in the block market instead of public market, considering a general investor who holds more than five per cent stakes to be a director, selecting a director from among the general investors in every company.
"In other countries sponsor-directors sell their shares only in the block market and general investors are not affected by the aggressive sell pressure made by them in the public market," Rizvi said.
Meanwhile, CSE President Fakhor Uddin Ali Ahmed made a similar proposal at a meeting held Sunday night at the NEC Bhaban to discuss the proposals made earlier for the stock market stablisation package.
The DSE president said to hasten the demutualisation of DSE, the authorities have abolished all other committees except the DSE audit and demutualisation committee and the board will form an executive committee in near future.
Another DSE proposal said those who sold out shares through direct listing will have to purchase shares, whose present market price is lower.
They proposed for a solution to the investors' investment made in private placement of the companies, which raised capital through private placement, within three months.
They also proposed to evaluate bank's market exposure limit considering the cost price or market value, whichever is lower.
http://www.thefinancialexpress-bd.com/more.php?news_id=156873&date=2011-11-22
The DSE will submit the proposals to the securities regulator today (Tuesday) for incorporating the same into the stock market stabilisation package.
The officials said the sponsor-directors, who own less than 30 per cent shares, will have to increase their stakes up to the proposed mark within next six months subject to the amendment to Companies Act, 1994.
The stakeholders will have to increase the stakes up to 15 per cent within three months.
DSE President Mohammad Shakil Rizvi made these proposals at a board meeting held Monday at the DSE office.
"Responsibilities of the sponsor-directors will also be increased, if they hold at least 30 per cent shares," Mr Rizvi told the FE.
The other proposals include keeping a provision for selling shares by sponsor-directors in the block market instead of public market, considering a general investor who holds more than five per cent stakes to be a director, selecting a director from among the general investors in every company.
"In other countries sponsor-directors sell their shares only in the block market and general investors are not affected by the aggressive sell pressure made by them in the public market," Rizvi said.
Meanwhile, CSE President Fakhor Uddin Ali Ahmed made a similar proposal at a meeting held Sunday night at the NEC Bhaban to discuss the proposals made earlier for the stock market stablisation package.
The DSE president said to hasten the demutualisation of DSE, the authorities have abolished all other committees except the DSE audit and demutualisation committee and the board will form an executive committee in near future.
Another DSE proposal said those who sold out shares through direct listing will have to purchase shares, whose present market price is lower.
They proposed for a solution to the investors' investment made in private placement of the companies, which raised capital through private placement, within three months.
They also proposed to evaluate bank's market exposure limit considering the cost price or market value, whichever is lower.
http://www.thefinancialexpress-bd.com/more.php?news_id=156873&date=2011-11-22
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