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Oct
- Dec 2001
CAPITAL MARKET
NEWS
| SEC Annual Report placed at the JS: The
State Minister for Finance and Planning Anwarul
Kabir Talukdar placed the
Annual Report 2000-2001 of the Securities and Exchange Commission,
Bangladesh in the Jatiya Sangsad. The report contains the activities
of the Commission, key statistics
of the capital market and performance of the stock exchanges. The report
also depicts regulatory steps taken by the Commission to vitalize the share
market and at the same time protect the interest of investors. |
| Country’s first credit rating agency: In order to
facilitate the ratings of the companies and securities in the capital
market, Securities and Exchange Commission (SEC) has accorded conditional
registration to the Credit Rating Information and Services Ltd.(CRISL).
Companies will be rated according to their overall activities. As a result
investors will be able to make choice regarding the quality of their
investments. |
| Direct listing opportunity: The Securities and Exchange Commission (SEC) has
approved a draft regulations providing direct listing opportunities to the
public limited companies. The regulations have already been published in
the official gazette. The direct listing opportunity will be available for
three months from the date of publication of the notification, i.e. up to 8
January 2002. |
| Round table Discussion: A roundtable discussion on “Capital Market:
Problems and Remedies” organized by the Dhaka Chamber of Commerce and
Industry (DCCI) was held on 6 November, 2001.The Commerce Minister Amir Khosru Mahmud
Chawdhury was the chief guest at the discussion. State Minister for
Finance Shah Mohammad Abul Hossain
also attended the roundtable as special guest. Securities and Exchange
Commission Chairman Manir Uddin Ahmad, Dhaka Stock Exchange Chairman
Shahique Khan, DCCI President Benazir Ahmed, DCCI Senior
Vice President Mahbub–uz Zaman, DCCI
Director Joinul Abedin, and Convenor of DCCI Capital Market
Development and Privatization wing AZM Nazimuddin, among others, spoke at the
meeting. Chairman of the Department of Finance and Banking of Dhaka
University Prof. M A Baqui Khalily presented the key note paper at the
round table discussion. |
|
Jamuna Multipurpose Bridge Authority’s share (proposed):
In a bid to increase depth of the capital
market, the Securities and Exchange Commission (SEC) has suggested
converting Jamuna Multipurpose
Bridge Authority into a public limited company and partially divesting its
shares through the capital market.
The SEC also advocated for offloading shares of profitable state-owned gas, oil and power
companies
through
the stock market |
| Dividend declaration by companies: To check irregularities in announcing dividend
for shareholders, the Securities and Exchange Commission (SEC) in a Gazette
notification asked the board
of directors of the issuer company of a listed security, while
considering/adopting any audited financial statements, to fix the date of
relevant annual general meeting and take decisions with regard to
recommending dividend as well
as the entitlement of the shareholders to get the dividend. |
|
Removal of sponsors from management: The Securities and
Exchange Commission (SEC) has formulated new rules in draft
form barring the issuers from remaining part of the management of
the listed companies, mostly traded under Z- category in the bourses,
aiming to force the companies to improve their operational and financial
performance. According to the proposed rule, there will be a reconstituted
board of directors consisting non-sponsors from the qualified shareholders
to run a company efficiently. They will be appointed in an extra-ordinary
general meeting (EGM). The new draft notification has been sent to the
leading chambers, two bourses and the association of listed companies, for
their opinion |
| Change in Index calculation : The Securities and Exchange Commission (SEC) has
directed both the exchanges to change their index calculation criteria by
excluding the ‘Z’ category shares from all share price index from 24
November, 2001. The new index is calculated for securities falling under
‘A’ and ‘B’ categories only and on weighted average method
considering the value of the traded volume. The step has been taken in
order to reduce market manipulation and help investors make informed
decisions |
| Removal of monopoly of audit firms: The monopoly of audit
firms for auditing same public limited companies year after year has now
been broken with the issuance of a new rule by the Securities and Exchange
Commission (SEC). According to the new rule, no company will be able to
appoint the same firm of chartered accountants as its statutory auditor for
a consecutive period of more than three years |
| Appointment of auditor for special audit: The Securities
and Exchange Commission (SEC) has appointed Ali & Associates as auditor
under rule 12(3) of the Securities and Exchange Rules, 1987 for conducting
special audit of the annual accounts of Sreepur
Textile Mills Ltd. for the year ended 31st December,
2000. The order for special audit has been made
in the public interest |
|
Dynamic Textile penalized: The Securities and Exchange Commission (SEC) has
penalized Dynamic Textile Industries Ltd. with a fine of TK. 1 lac for
non-compliance of securities law in connection with dividend
payment |
Chairman and MD of Mark BD penalized: The Securities and
Exchange Commission (SEC) has penalized the Chairman and Managing Director
of Mark Bangladesh Shilpa and Engineering Limited with a fine of Tk.10
crore for
non-cooperation with the auditors appointed by the Commission for special
audit of the financial statements for the year ended 30th June,
2000
| Former MD of SABINCO sued: A case has been filed by the Securities and
Exchange Commission against Md. Kutubuddin, former managing director of
Saudi-Bangladesh Industrial and Agricultural Investment Company
Ltd.(SABINCO) on charges of market distortion by manipulative trading of shares of
different companies
in the stock exchanges during
June to July, 2000 through different
brokers |
| SEC lodged case: The Securities and Exchange Commission (SEC) lodged
criminal case with the Chief Metropolitan Magistrate Court in Dhaka
against seven shareholders of Chittagong Cement Clinker & Grinding
Co. Ltd. including T K Oil Refinery Ltd. of Chittagong on charge of
violation of SEC regulations related to insider trading |
| Brokerage house suspended: The Securities and Exchange Commission (SEC) has
suspended DSE brokerage house – Anwar Securities Ltd. for 15 days with
effect from 4 October 2001 for making large purchases against accounts
having insufficient deposit |
| Show cause notices: The Securities and Exchange Commission (SEC) has
issued show cause notices on four brokerage houses for violating
securities law in connection with manipulative trading involving SABINCO
which took place during June and July 2000. The houses are Azam
Securities Ltd., Securities Consultants Ltd. (SCL), Imtiyaz Hussain
& Company and Capital Market Services Ltd |
|
DSE |
| DSE prepares for Over-The-Counter trading: The Dhaka Stock
Exchange has taken steps for introducing over-the-counter (OTC) trading
on the stock exchange. In this market
non-listed securities with capital of at least one crore
taka as well as securities of de-listed companies can be traded |
| DSE hails Government
decision: The
Dhaka Stock Exchange has welcomed Government decision to cut bank rate
by one percent, interest rate against export credit to the ready made
garments sector by three percent and interest rate on saving
certificates |
|
CSE |
| New President of CSE: The board of directors of Chittagong Stock
Exchange (CSE) in its meeting elected Mr. Mirza Salman Ispahani as its
new President. The post of the CSE president fell vacant following the
resignation of its founder president Mr. Amir Khosru Mahmood Chowdhury
who is now the minister for commerce. Before assumption of the post of
CSE psresident, Mr. Ispahani was the Senior Vice President of the bourse |
| 6th AGM of CSE: Sixth Annual General
Meeting of the Chittagong Stock Exchange Ltd. was held on 24 December,
2001. The CSE President Mr. Mirza Salman Ispahani presided over the
meeting. The meeting approved the audited accounts of 2000 of CSE and
re-appointed Rahman Rahman Huq as auditor for the next year |
|
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SEC
Quarterly Review
