16 firms warned of violating min shareholding rule - Share market analysis of dhaka stock exchange, Bangladesh

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22 January, 2014 09:49 AM Source: Dhaka Tribune

Bangladesh Securities and Exchange Commission (BSEC) warned 16 companies of delays to comply with the minimum shareholding norms by the sponsors and directors.

Barakatullh Electro Dynamics Ltd faced Tk1 lakh fine for violating the directive on minimum shareholding.

The commission in a statement yesterday said the companies were warned due to non-compliance with the directive within the stipulated time. It did not mention the deadline for compliance of its directive, however.

Earlier, the BSEC asked the companies to provide information about the latest status of shareholding position of directors, sponsors and promoters.

The directive says the sponsors, directors and promoters, who are now jointly holding less than 30% and individually less than 2% shares, to acquire the rest of the amount.

The companies that failed to follow the directive are Ambee Pharmaceuticals, Anlimayarn Dyeing Ltd, CMC-Kamal Textile Mills Ltd, Padma Islami Life Insurance Ltd, Pragati Life Insurance Ltd, Quasem Drycells, Rangpur Dairy & Food Products, Beach Hatchery, Imam Button Industries, Pragati Insurance, Standard Ceramic Industries, Global Insurance, Information Services Network, Intech Online, Islami Insurance Bangladesh and Monno Ceramic Industries.

On November 22 in 2011, the regulator through a directive made it mandatory for the sponsors and directors of listed companies to hold a minimum stake of 2% individually and 30% collectively.

The directive on minimum shareholding was meant to stop sales of shares by sponsors and directors and to create a buying pressure in the stock market for the benefit of general investors.

There were also allegations that many sponsors and directors sold off their shares but still holding the controlling power of the company.

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