Senior Reporter: No company with a capital of less than Tk 30 crore can be on the main board of the stock market. The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, has set a deadline of December to raise capital for companies listed with a paid-up capital of less than Tk 30 crore.
According to the BSEC guidelines, companies with a paid-up capital of more than Tk 20 crore will have to raise their capital by Tk 30 crore by June 30 and those with less than Tk 20 crore by December 30. A letter in this regard was given to the concerned companies last Thursday. BSEC Assistant Director Mohammad Minhaj bin Selim issued the letter.
When asked, BSEC Commissioner Sheikh Shamsuddin Ahmed confirmed the letter. He said there were frequent allegations of manipulation of shares of small capital companies. For this reason, initiatives have been taken to remove small capital companies from the main market. Those who can raise paid-up capital within the stipulated time will remain in the main market. And the companies that fail will be removed from the main market.
There are more than 50 companies currently listed on the Dhaka Stock Exchange (DSE) with a paid up capital of less than Tk 30 crore. The BSEC has set a deadline of June 30 for these companies to raise capital.
The letter states that the companies should inform the commission in writing within a month about the steps to be taken to increase their capital. The letter also said that the commission would provide all necessary assistance to the companies in this regard.
The companies have been instructed to increase their capital as per the listing provisions of the two stock exchanges of the country.
Article 9 (1) of the listing provisions of the Dhaka Stock Exchange states that the paid up capital of listed companies must be at least Tk. 30 crore. Although this provision has been in place for a long time, many listed companies have not complied with it. Now BSEC has given time to the concerned companies to implement this provision.
Source: Daily StockBangladesh by www.dailystockbangladesh.com.
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