Welcome to the presentation On

Market Regulation and conduct

Presentation by
Mohammed Nazrul Islam
Additional Director, BSEC.
02 August 2022
Agendas to be discussed:
Dhaka/Chittagong Stock Exchange
(Listing) Regulations, 2015
 Listing, Direct listing & automatic listing;
 Why listing: benefits

 Capital Raising (Initial and subsequent) and process

 Few relevant regulatory activities and frameworks link with governence issues

POST LISTING CONTINUOUS COMPLIANCES:

 Financial statements & audit

 ‘BOD’s meeting and Shareholders’ meeting (AGM/EGM) including e-voting

 Dividend and its compliances

 Compliance by Sponsors or Directors or placement shareholders (Reg-34)

 PSI & Material information and Insider trading

 Voluntary & Non-voluntary delisting

Exit Plan(Voluntary & Non-voluntary delisting and exit)

Transaction/Transfer of Listed Securities (Reg-47):
 Benefits : listing of securities
• liquid securities (Shares),
• Goodwill capitalization
Sponsors • Tax Incentive

• Ongoing compliance
• Increase credibility of company to stakeholders (Bank, customer, suppliers etc.
• Unlocking further financing options ( RPO, Right),
• Migration to Stock exchange Main Board
Issuers
• Tax Incentive (reduce rate tax)

• Exist route of angle investors (VC, Banks & preference shareholders)

• more diversified investor participation, including both retail and institutional
investors
Investors • Tax Incentive
• Alternative assets class for investors (Portfolio effect)
 G-SEC MARKET OF
BANGLADESH
Government
2018- 36,475 Outstanding 2018- 199,363.65
borrowing 19 Crore public debt of the 19 Crore
through issuance 2019- 75,600 Government from 2019-
of T-bonds the banking sector
279,601.97
20 Crore 20 Crore

• In FY 2019-20, secondary market turnover is BDT 59,479.32 crore

which shows a poor turnover velocity ratio (0.21%) and indicates
poor liquidity situation in secondary market.

• The primary market yield curve of T-bond is 7.91% to 9.06% at

different tenors (2 years-20 years) whereas, secondary market yield
curve to G-Sec stands 6.50% to 9.48%.

• The holding pattern of government securities shows that banks were

the major investors accounting for 73.79% of overall holding (PDs
40.69% and non-PDs 33.10%) in FY 2019-20.
WHY ON-EXCHANGE TRADING OF G-SEC IS
REQUIRED?

 Vibrant trading of G-Sec in secondary market will create price

discovery and ultimately would reduce the cost of
government borrowings.
 Increase capacity of supplying credit to private sector.
 Will reduce the dependency on borrowing from National
Savings Certificate.
 Product diversification in capital Market ( Introducing Fixed
Income securities)
 Capital Raising (Initial and
subsequent)
• Fixed Price method: when offered at par value.
Initial offer • Book Building Method: when offered above par value
(QIO& IPO) • Issued by govt. for raising fund-at par or discount

• Repeat qualified investor offer, RPO & Right issue

RQIP & RI

• after reaching paid up capital up to 30.00 crore

migration through migration to main board).
 Main and SME Board :Capital structure
and others financials requirement
Contents Main Board SME Platform (Fixed Price) SME Platform (Book-building)

Pre-issue paid- Minimum BDT Taka 30 crore for fixed No limit BDT Taka: 10 crore).
up- price;
capital(Existing) Minimum BDT taka 75 crore for book
building:

Post-issue paid- Minimum BDT Taka above 50 crore for BDT Taka: 5 crore to 30 BDT Taka: 5 crore to 30 crore
up-capital fixed price. crore (U/R-3(2)(a). (U/R-3(5)(a
Minimum BDT Taka 80 crore for book-
building.

Positive Net latest 1 financial year for fixed price No such requirements Net profit after tax for immediate
Profit After 2 financial year for book building. preceding two financial years.
Tax(NPAT)

Positive latest 1 financial year for fixed price No such requirement No such requirement
operation cash 2 financial year for book building.
flow

Accumulated No accumulated retained loss at time of No such requirement No such requirement

retained loss application
Process of offering :IPO & QIO
Posting in Exchange’s
Application to website of primary
BSEC and Issuer, Recommendati
Exchange Exchange and on-within 20
Issue Manager working days
final
recommendation letter of consent issuer or issue manager
to the within sixty shall send invitation
along with the
Commission working days of prospectus to the
within 90/60 receipt qualified Investors
days

allotted
securities on issue proceeds
Subscription shall be
pro-rata basis as
will open for per their transferred to
120 hours intended the issuer after
quantity listing with DSE.
 Tentative time schedule for QIO & IPO
Actions Fixed price Book
building

BOD (to take decision on the issue and approval of FS) T+1 T+1

AGM/EGM (with shorter notice) T+16 T+16

Appointment of intermediaries (to approve the issue) T+20 T+20

Compilation of of red-herring prospectus/IM T+50 T+50

Application to BSEC for approval of QIO T+51 T+51

Primary recommendation by Exchanges to BSEC- within 20 days T+71 T+71

Issue of deficiency letter by Commission(if any) within 40 working days/web show T+81 T+81

Finalization of red-herring prospectus through web show & Completion of due diligence report T+85

Submission of final recommendation by Exchange to BSEC within 60 days T+121 T+121

Maximum 60 working day for issue of consent by BSEC/Rejection T+131 T+131

Completion of subscription (fixed price or book-building) T+161 T+161

Listing with Exchange and fund release. T+170 T+170

 E-GOVERNANCE is a new dimension of corporate
governance.
Activity Issues
Maintenance and Records Share register
ownership transfer Share trading
Information submission & an integrated on-line data-
dissemination platform gathering, information
submission & dissemination
platform by the exchanges
Notice of Meetings Board Meetings and the
General Meetings, are also to
be sent by electronic means
Responsible/ subject matter Remarks or ref,
through CDBL The compliance of section 38
& 39 of CA, 1994
through stock exchanges The compliance of section 38
& 39 of CA, 1994
shareholding report, Condition no. e of
declaration, corporate Commission’s
actions, financials order-SEC/SRMIC/94-231/942
disclosures, publication & dated 22.06.2020
dissemination of PPSI &
material information,
complaint settlement and
other compliances and
submissions by the issuer
companies
By issuer company
 Cont’d page
Activity issues Responsible/ subject matter Remarks or ref,

Payment of Cash dividend directly by the means of bank transfer or Optimal as per existing laws, will
Dividend: BEFTN or Mobile Financial Services be mandatory.
(“MFS’’) or any electronic payment
system

Payment of Stock dividend directly through crediting entitled BO Mandatory

Dividend: Accounts through CDBL

Conducting Board Digital platform Issuer company Condition no. (c) of Commission’s
meeting order-SEC/SRMIC/94-231/25 dated
08.07.2020
Conducting through physical May use third party Condition no. (a) of Commission’s
General Meeting presence or using digital order-SEC/SRMIC/94-231/25 dated
(AGM or EGM) platform or using Hybrid 08.07.2020 and
System (in combination Notification no.SEC/CRRCD/2009-
of physical presence 193/07/Admin…dated 01.09.2020
and digital platform)
Voting Through Mandatory for Z category Through listed entity for Z cate. Company, will be
Electronic Means mandatory for all.
On going Financials reporting and auditing (R.14 & 15):

The financial statements (annual/quarterly) shall be prepared in

accordance with:
 the Bangladesh Securities and Exchange Rules, 2022
 IFRS/IAS as adopted in Bangladesh;
 Get audited by the panel of auditors of the Commission.
 Auditor shall not be more than 3 years.
Quarterly Financial Statements (Reg-16, and FRD on June 20,
2018):

Notifying to the Exchange and the Commission in advance the date

and time of its board of directors before 3 (three) working days of
holding such meeting:
 No stock/bonus entitlement shall be declared as interim dividend.
 Declare the net asset value (NAV) per share, earnings per share
(EPS) and net operating cash flow per share (NOCFPS)
Submission of Quarterly Financial Statements
(R.17 and FRD)
Quarterly financial statements (audited/un-audited) shall be submitted
to the Exchange and the Commission along with PSI as per following:
Name of Due time period Publication Fine for delay
Quarter submission

1st (Q1) Within 45 days; for Two national dailies, Tk. 5000/- per day
Life Insurance 90 one Bangla and one
days English as well as in one
online daily news site

2nd (Q2) within one month do Tk. 5000/- per day

3rd
(Q3) within one month do Tk. 5000/- per day
Submission of Annual Financial Statements and
Other Reports (Reg-18 & FRD)
Annual financial statements shall get audited and be submitted
to the Exchange and the Commission as per following:

Name Audit Submission Total period Fine for delay

period period submission
(per day)
Listed company other Within Within 14 134 days Tk. 5000/-
than life Insurance: 120 days days

listed life insurance 30 June

company (Life fund
valuation by actuary)
All listed mutual funds within
or CIS three
months
Adoption of Annual Audited Financial Statements
R.16 & 19 (FRD and BSEC’s notification dated June 30, 2021)
Notifying to the Exchange and the Commission in advance the date and time
of its board of directors before 3 (three) for interim and 7 for annual working
days of holding such meeting:

 NAV, EPS and NOCFPS

 No dividend shall be paid other than out of profits of the year or any
other undistributed profits
 fix the date of the relevant annual general meeting (AGM)
Definition & Objectives of dividends
A dividend is the distribution of some of a
company’s earnings to a class of its
shareholders.
The objectives may be:
 appropriately rewarding shareholders

through cash dividend,

 Capitalization (Stock dividend)

 to support the future growth (no dividend)

 Dividends/Coupon and class of
shareholders

Dividend can be distributed to:

 equity shareholders as dividend (cash or stock)

by a Company against their investment in shares;

 Unitholders as cash dividend against their

investment in Mutual Fund;

 Bond holders as cash coupon against their

investment in bond/SUKUK.
 Types of Dividend
 On basis of periods/ time:

A. Annual Dividend/Final dividend

B. Interim Dividend

 On basis of purpose:

A.Cash dividend and

B.Stock Dividend/ bonus
C.Special Dividend. In case of winding up of a company
having good retained earnings
Declaration basis and entitlement

 Dividend would continue to be declared on

per share basis on the Ordinary Equity Shares
of the Company having face value:
◦ Taka 10 or
◦ 100 each.

 based on their shareholding on the record

date as per declaration.
Payment of Dividend (Reg-28, BSEC’s directive dated January 14, 2021):

Recommendation, approval & other compliances:

 Dividend is recommended by the Board at once a year, after the
announcement of the full year results and before the Annual General
Meeting (AGM) of the shareholders,
 Dividends is approved by the shareholders at AGM.
 The Board may also declare interim dividends subject to provisions of
securities laws.
 The issuer of listed securities shall pay off the annual or final dividend except the interim
dividend and dividend from mutual fund within 30 (thirty) days of approval
 interim dividend shall be paid off to the entitled shareholder, within 30 (thirty) days of
record date
 the dividend on any scheme of a mutual fund shall be paid off to the entitled unit holder,
within 45 (forty five) days of approval by the board of trustee
 Within 10 (ten) days of declaration of cash dividend by the board of directors or board of
trustee of the issuer, as the case may be, an amount equivalent to the declared cash
dividend payable for the concerned year shall be kept in a separate bank account of the
issuer dedicated for this purpose
 Manner and procedures of Cash
dividend payment
Cash dividend shall be paid directly to the bank account-
through Bangladesh Electronic Funds Transfer Network (BEFTN)
or through bank transfer or any electronic payment system as recognized by the
Bangladesh Bank (if not possible through BEFTN) 
Or, In case of margin loan and claim by loan provider, through the Consolidated
Customers’ Bank Account (CCBA) of the stock broker
or to the separate bank account of the merchant banker or portfolio manager
through BEFTN
through the security custodian following Foreign Exchange Regulation for non-
resident sponsor, director, shareholder, unit holder or foreign portfolio investor
(FPI)
Through issuance of cash dividend warrant in case of non availability of
information a mentioned above. 

 Intimate to the shareholder or unit holder through a short message

service (SMS) to the mobile number or email address as provided in the
BO account cash dividend and issuance a certificate of TDS
 Manner and procedures of stock
dividend distribution
The issuer shall credit stock dividend directly , within 30 (thirty) days of
declaration or approval or record date, subject to clearance of the
exchange(s) and the Central Depository Bangladesh Limited (CDBL);
 to the BO account;

 to the Suspense BO Account for undistributed or unclaimed stock

dividend or bonus shares

 The Suspense BO Account shall be held under Block Module until

transfer to the rightful ownership

 or issue the bonus share certificate of the entitled shareholder in case

of paper mode.
 If any stock dividend or bonus shares remains unclaimed or unsettled

including corporate benefit in terms of bonus shares thereon for a

period of 3 (three) years from the date of declaration or approval or
record date, as the case may be, shall be transferred in dematerialized
form to the BO Account of the Fund as mentioned at clause (8):
Authentication of Financial Statements (Reg-20):
1. Any un-audited financial statements of the issuer shall be authenticated
on behalf of the Board of Directors/Trustee signed by:
 Chief Executive Officer/Managing Director,
 at least two Directors including Chairman,
 Chief Financial Officer/Head of Finance & Accounts and
 the Company Secretary/Compliance Officer

2. Audited financial statements of the issuer of listed securities shall be

authenticated by as per the provisions of the †Kv¤úvbx AvBb, 1994
(section 189):
In case of Banking Companies: Managing Agent and at least three Directors
In case of other Companies: Managing agent/Company Secretary and two
Directors including Managing Director
Submission of Annual Report (Reg-22 & FRD-..)
At least prior 14 days before the general meeting and printed copy of annual
report along with notice shall be submitted to the Exchange & the
Commission as follows:

Particulars Documents Fine for delay

submission
30 copies of Annual Report, Annual Tk. 500/- per
Annual audited financial statements, certificate on day
Report compliance of corporate governance
guidelines
Fixation of Record Date (Reg-23):
The required notice period to fix a record date shall be within 14
to 30 market days (at least 14 (fourteen) market days but not
exceeding 30 (thirty) market days) from the date of the
concerned Board Directors’ meeting/Trustees’ meeting.
 shall be a market day of the Exchange
 shall not be changed in any circumstances
 if the record date falls in any public holiday, the first
market/trading day subsequent to such holiday shall be the
record date
Annual General Meeting (Reg-24 & 25):

Compliances relating to AGM/EGM other than CA-1994:

 21 (twenty one days) prior notice to AGM/EGM

 within 45 (forty five) working days from the record date

 in each year of the Gregorian Calendar

 no benefit in cash or kind, except cash dividend or stock

dividend, shall be paid to the holders of equity securities

 shall be held within the city, town or locality in which the

registered office of the company situated

 Hybrid System: e-voting through on-line platform or system or digital
platform

Hybrid System:
Conducting its general meeting (AGM or EGM) using Hybrid System
(.i.e. in combination of physical presence and digital platform).

• Notify to the shareholders regrading address, link of attending meeting and e-voting.
• pre-registration facility for attendance of shareholders, casting vote and having log register
a facility for • holding shares in physical and dematerialized form
e-voting • on any resolution proposed to be considered at the general meeting

• either by physical electronic ballot or e-voting,

• a holder may vote either for or against each resolution.
Proxy vote

• either for or against each resolution

• open for not less than 1(24 hours) and more than 3 (72 hours) days prior to the meeting
agenda-wise • up to the closure of meeting on the day of the general meeting
voting option
 e-voting through on-line platform or
system or digital platform
• one-way live or live streaming (create and share videos in real time at YouTube,
Facebook or twitch)
the • webcast of the proceedings of all shareholders’ meetings
proceedings

• Appointment of an independent scrutinizer or by stock exchanges for authentication

of voting system, voting results and whole process
Authentication • shall report to the Commission within 48 (forty-eight) hours of conclusion of the
of voting results Meeting by Issuer company(not scrutinizer)

• provide the service of digital platform for conducting general meetings of shareholders
and on-line or e-voting platform or system
• stock exchanges may nominate any senior official of the exchange as an observer in
Eligible entity the general meeting of shareholders
POST LISTING CONTINUOUS
COMPLIANCES Cont….

Submission of Audio Visual Recording (Reg-26):

Submission of unedited audio visual recording within 3 working days from the
date of holding of the AGM/EGM.

Attendance, Minutes and Filings (Reg-27):

The issuer shall furnish copies of attendance of shareholders/unit holders and
minutes of its general meeting (AGM/EGM) to the Exchange and to the
Commission within 14 days of holding of such general meeting.
POST LISTING CONTINUOUS
COMPLIANCES Cont….
Dividend Compliance Report (Reg-29):
The issuer shall submit a compliance report to the Exchange and
to the Commission in respect of dividend payment within 7
(seven) working days.

Pending Annual General Meeting (AGM) (Reg-32):

In case of any litigation with regard to the pending AGM(s), the
issuer of listed equity securities shall not declare any dividend or
rights offer until the matter is resolved by the competent Court.
Disclosure of Price Sensitive Information (Reg-
33, BSEC’s Order 07.12.2015):
The issuer of listed securities shall make full disclosure of all
price sensitive information (PSI) to the Exchange and the
Commission-
 within thirty minutes of the decision

 shall hold the board of directors’ meeting involving price

sensitive decision either after the trading hour or on a holiday

Particulars Time Publication Communication

period by/through
PSI Within 30 Two national dailies Fax, electronic
minutes and one on line news communication, special
site messenger , courier service
 আলোচ্যসূচি

১. মূল্য সংবেদনশীল তথ্য: কেইস স্টাডি

২. সংজ্ঞা
মূল্য সংবেদনশীল তথ্য, সুবিধাভোগী ও সুবিধাভোগী ব্যবসা-এর

৩.মূল্য সংবেদনশীল তথ্য সরবরাহের পদ্ধতি

৪. সুবিধাভোগী ব্যবসা নিষিদ্ধকরণ
৫.সুবিধাভোগী ব্যবসায়ের শাস্তি 33
 Case Study
Bangladesh Welding
Electrodes Limited

34
Background

Average Share Price of Bangladesh Welding Electrodes

Limited abnormally increased

615.94% increase
within 3 Months
from Tk. 6.9 to Tk. 42.50 per share
By disseminating fake news about Saudi investment in the
company

35
 Timeline of
Information
Disseminated at DSE News that Saudi investor Al Awad Group was

(2007)
the company informed that it has received an e-mail
interested in forming a joint venture with BD Welding
communication from a Saudi Investor who expressed
got reported in the newspapers “Weekly Industry” and
their intention to come to a joint venture for setting up
share price soared. The probe found that the news
an Oxygen plant at Chittagong. however, the investor
was published in collaboration with the managing
has not yet visited Bangladesh.
director of BD Welding

11 February 19 February March 1 04 March

the company informed that the scheduled visit by the

the company informed that Saudi Investor
has given them a program schedule to visit
BD on 8th March, 2007 and is expected to
visit factory at Chittagong on March, 2007.
proposed Saudi Investor is postponed for reported
hospitalization of the chairman of the Saudi Company. The
company has also informed that no value of shares of the
Sponsors/Directors of the Company is determined yet as two
separate valuer will first assess the assets of the Company

36
 Findings by BSEC
Enayet Karim communicated with BD Welding from the newspaper
office at Paltan, Dhaka through an email pretending to be Al Awad
Group from Saudi Arabia expressing interest to invest, according to
probe reports
BD Welding then informed the bourses that Al Awad from Saudi had
expressed interest via an email to install a joint venture oxygen plant in
Chittagong and the Saudi group was about to make a visit

Al Awad, however, did not make any such visit to BD Welding, as the whole plot was
fake according to the probe

the news was published in collaboration with SM Nurul Islam, the managing director
of BD Welding

37
 Illegal gain from
share price
manipulation
▰ Before that, Karim bought 20,500 shares of BD
Welding at Tk 6-7 between December 6, 2006 and
February 4, 2007. He also bought 1.72 lakh shares
of the company at Tk 6-13 between December 14,
2006 and February 8, 2007.
▰ Later, he sold the shares at Tk 33-34 on February
4, 2007, and then again on February 8 at Tk 46
per share, making the windfall profits.

38
 Subsequent
Punishment
▰ After investigation , BSEC filed a case against the two in 2007
▰ On Aug 17, 2015, the capital market tribunal sentenced a SM Nurul
Islam, managing director of BD Welding Electrodes and and Enayet
Karim, editor of the Daily Industry to three years in prison for share
price manipulation .
▰ The special tribunal also fined them Tk 20 lakh each, in default of
which they have to stay another six months in jail.
▰ Police arrested Islam and Karim on Aug 17, 2015

39
মূল্য সংবেদনশীল তথ্য (PSI) কী?
সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (সুবিধাভোগী ব্যবসা নিষিদ্ধকরণ)বিধিমালা, ১৯৯৫ এর বিধি ২(ঘ) অনুযায়ী-
“মূল্য সংবেদনশীল তথ্য” অর্থ এইরূপ তথ্য যাহা প্রকাশিত হইলে সংশ্লিষ্ট সিকিউরিটির বাজার মূল্য প্রভাবিত হইতে পারে, এবং নিম্নবর্ণিত
তথ্যাবলী এই সংজ্ঞার অন্তর্ভু ক্ত হইবে, যথাঃ—
(অ) কোম্পানীর আর্থিক অবস্থা সম্পর্কি ত প্রতিবেদন বা এতদসংক্রান্ত মৌলিক তথ্য;
(আ) লভ্যাংশ সংক্রান্ত তথ্য;
(ই) সিকিউরিটি হোল্ডারগণকে রাইট শেয়ার, বোনাস ইস্যু করা বা অনুরূপ সুবিধা প্রদানের সিদ্ধান্ত;
(ঈ) কোম্পানী কোন স্থায়ী সম্পত্তি ক্রয় বিক্রয়ের সিদ্ধান্ত;
(উ) কোম্পানীর বিএমআরই (ইগজঊ) বা নূতন ইউনিট স্থাপন সংক্রান্ত তথ্য;
(ঊ) কোম্পানীর কার্যাবলীর ক্ষেত্রে মৌলিক পরিবর্ত ন (যেমন—উৎপাদিত সামগ্রী, পরিকল্পনা প্রণয়ন, বাস্তবায়ন বা এতদসম্পর্কি ত নীতি
নির্ধারণ ইত্যাদি);
(ঋ) কমিশন কর্তৃ ক সরকারী গেজেটে প্রজ্ঞাপন দ্বারা নির্ধারিত অন্য কোন তথ্য।

40
“সুবিধাভোগী” কে/কারা?

সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (সুবিধাভোগী ব্যবসা নিষিদ্ধকরণ)বিধিমালা, ১৯৯৫ এর বিধি ২(ঙ) অনুযায়ী-
“সুবিধাভোগী” অর্থ এমন কোন ব্যক্তি যিনি—

 (অ) কোন কোম্পানীর পরিচালক, প্রধান শেয়ারহোল্ডার, ম্যানেজিং এজেন্ট,ব্যাংকার,

নিরীক্ষক, উপদেষ্টা, কর্মকর্তা বা কর্মচারী।
 (আ) এমন একজন ব্যক্তি যে, উপ—দফা (অ) তে উল্লিখিত কোন ব্যক্তির সহিত
তাহার সম্পর্কে র কারণে অথবা কোম্পানীর সহিত যে কোন সম্পর্কে র কারণে বা তাহার
অবস্থানের কারণে মূল্য সংবেদনশীল তথ্য জানিতে পারেন বা উক্ততথ্য জানিবার
সুযোগ তাহার আছে বলিয়া বিবেচনা করা যায়।

41
“সুবিধাভোগী ব্যবসা
(Insider Trading)”
কী?
সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (সুবিধাভোগী ব্যবসা নিষিদ্ধকরণ)বিধিমালা, ১৯৯৫ এর বিধি ২(চ)
অনুযায়ী-

“সুবিধাভোগী ব্যবসা” অর্থ মূল্য সংবেদনশীল তথ্যের ভিত্তিতে কোন সুবিধাভোগী

কর্তৃ ক কোন সিকিউরিটি ক্রয় বা বিক্রয় বা অন্যবিধভাবে হস্তান্তর।

42

42
 মূল্য সংবেদনশীল তথ্য সরবরাহের পদ্ধতি
এসইসি/সিএমআরআরসিডি/২০০৯—১৯৩/১৭৯/প্রশাসন/৬৪, তারিখ- ৭ ডিসেম্বর, ২০১৫ অনুযায়ী-

কমিশন এতদ্বারা মূল্য সংবেদনশীল তথ্য সরবরাহের নিম্নোক্ত পদ্ধতি নির্ধারণ করিল, যথা:
(১) স্টক এক্সচেঞ্জে তালিকাভু ক্ত প্রতিটি সিকিউরিটি ইস্যুকারী উহার কোন মূল্য সংবেদনশীল তথ্য
সংশ্লিষ্ট বিষয়ে সিদ্ধান্ত গ্রহণের তিরিশ মিনিটের মধ্যে কিংবা তথ্যটি উহার গোচরে আসার তারিখেই
তাৎক্ষণিকভাবে উহার চেয়ারম্যান, প্রধান নির্বাহী কর্মকর্তা বা কোম্পানি সচিব এর স্বাক্ষরে লিখিতভাবে
একই সাথে বাংলাদেশ সিকিউরিটিজ অ্যান্ড এক্সচেঞ্জ কমিশন এবং সংশ্লিষ্ট স্টক এক্সচেঞ্জ (যদি উভয়
এক্সচেঞ্জে তালিকাভু ক্ত থাকে তবে একই সাথে উভয় এক্সচেঞ্জ) এর নিকট ফ্যাক্স ও বিশেষ বার্তাবাহক
মারফত, ক্ষেত্রবিশেষে কু রিয়ার সার্ভি সযোগে প্রেরণ করিবে; এবং উক্ত তথ্য বহুল প্রচারিত দুইটি
দৈনিক পত্রিকায় (একটি বাংলা এবং অপরটি ইংরেজি) ও একটি অনলাইন (online) পত্রিকায়
অবিলম্বে প্রকাশনা নিশ্চিত করিবে;

43
(২) তালিকাভু ক্ত সিকিউরিটি ইস্যুকারী কর্তৃ ক প্রেরিত ও
প্রকাশিত উক্তরূপ তথ্যটিতে ইস্যুকারীর পরিচালনা পর্ষদের
সিদ্ধান্ত গ্রহণের তারিখ ও সময়, কিংবা ক্ষেত্রমতে তথ্যটি উহার
গোচরে আসার তারিখ উল্লেখ করিতে হইবে;

(৩) সংশ্লিষ্ট স্টক এক্সচেঞ্জ উক্ত তথ্য প্রাপ্তি মাত্রই তথ্যটি

নিউজ মনিটরের মাধ্যমে প্রচার করিবে;

PSI Example

44
Compliance by Sponsors or Directors or
placement shareholders (Reg-34)
Declaration of Sponsors or Directors for Buying and Selling of Securities :
 A written report shall be submitted to the Exchange and to the Commission about

his intension to buy or sell or otherwise dispose of the securities.

 Each director except independent director (s) shall hold minimum 2%

shares and sponsor /promoters and directors shall all time jointly hold
30% of paid up shares. (BSEC’s notification 21.05.2019)

 In case of non-holding of the said amount of shares the

sponsors/promoters and directors would not be able to sell or transfer any
shares until acquisition of the aforesaid amount of shares. (BSEC’s
notification 21.05.2019)
 All the listed companies are required to comply with the Corporate
Governance Guidelines issued by BSEC on August 7, 2012.
POST LISTING CONTINUOUS
COMPLIANCES Cont….
Submission of Statement of Monthly Shareholding Position and
Free Float Reporting (Reg-35, BSEC’s Order dated June 22, 2020):

 The issuer shall submit the statement of

shareholding/unitholding position (sponsor/director, foreigner,
institution and shareholder who hold 5% or more) within
seventh day of each month of English Calendar to the Exchange
and within 15 days of each quarter of English Calendar to the
Commission.

 The issuer shall submit the free-float reporting within seventh

day of each month of English Calendar to the Exchange.
POST LISTING CONTINUOUS
COMPLIANCES Cont….
Compliance of Corporate Governance Guidelines (Reg-36):
The issuer of listed equity securities shall comply with all the provisions of
Corporate Governance Guidelines issued by the Commission from time to
time;

Reporting on Financial Statements, Corporate Governance and other

Reports of Listed Securities (Reg-37):

The Exchange shall review the financial statements (quarterly/annual), the

annual reports and the reports on compliance of corporate governance of the
listed securities within thirty days of receiving such financial statements and
reports:
POST LISTING CONTINUOUS
COMPLIANCES Cont….
Material Change/Information (Reg-38):
Every issuer of listed securities shall notify the Exchange and
the Commission about any material change/information as
defined under regulation 2(1)(l) of these Regulations.

Face/Par Value of Equity Securities (reg-39):

Unless otherwise prescribed by the Commission, face/par
value of any equity securities and mutual funds listed or to be
listed with the Exchange shall be Taka 10.00 (ten) only.
Transaction/Transfer of Listed Securities (Reg-47):
Transaction of all securities listed with the Exchange shall be
made through the trading system of the Exchange.
Following circumstances, transfer of securities may be made
outside the trading system of the Exchange:
 Transfer of securities by way of gift among the family
members i.e. spouse, son, daughter, father, mother,
brother and sister;
 Transfer of securities for execution of a Court order;

 Acquisition of securities in consideration of other than

cash;
 Transfer of shares in case of confiscation/loan default.

49
De-listing of Securities (Reg-51 & 53):
Reasons for de-listing:-
 Failed to declare dividend (cash/stock) for a period of five
years
 Failed to hold its Annual General Meeting for a consecutive
period of three years;
 stopped its commercial operation/production/exploration for
a period of consecutive three years;
 Failed to pay the annual listing fees for a period of 3 years;
and
 any order to de-list the securities for non-compliances of any
provision.
 All fixed term securities shall be de-listed from the exchange
on its maturity.
50
Voluntary De-listing (Reg-52):

 Criteria for Voluntary De-listing

 (a) No trade of its securities at the Exchange during last one
year; or
 (b) If the shareholdings of the sponsors and directors exceeds
90% of the total paid-up capital; or
 (c) If any non-listed company acquires/holds more than 90%
of paid-up capital of the issuer of listed securities.

51
Common Mistakes/Non-compliances by Listed Companies:

 Fixing Record date/AGM/EGM date

 Calculation of restated EPS considering Bonus shares
 Comparative Presentation of Quarterly Financial
Statements.
 Incomplete declaration form for sale/buy/gift of
sponsor/directors’ shares
 Holding Board meeting concerning PSI during trading hour.
 Non-submission of Statement of Monthly shareholding
position
 Non-submission of reports within stipulated time
 Not update website’s on regular basis.

52
Exit Plan(Voluntary & Non-voluntary delisting and exit) under Commission 'directive on 28.12.2020

Delisted securities from the main board

of the exchange(s)

Delisted securities trading at the over-

the-counter (OTC) or ATB platform;

Any other securities as directed by the

Commission
 Process of Voluntary & non-voluntary De-listing (Exit plan)
1 Convene of BOD meeting to approve voluntary Delisting

2 Application for in Principal Approval

3 In principal Approval by the Commission/Exchange

4 Determination of offer price/floor price

5 Public Announcement
 
6 General Meeting (AGM/EGM)
 
7 Final Application to BSEC/Stock Exchange
 
8 Letter of Offer

9 Fund settlement through Opening an escrow account

 
 
10 Settlement of Securities
 

11 Final Consent from BSEC/Stock Exchange

 
An example of determination of offer price and
consider determination

No. of Shares
except
% of public & Directors/ Expected
Price Total Nos.
Determination of offer price/floor price institutional sponsor/ Acquisition Higher One
(BDT) shares
holding promoter Cost (BDT)
and person
in concernt

Option 1: The offer price/floor price of the

shares under voluntary de-listing shall be      
higher of any of the followings:      

(a) at par value share or issue price at IPO; or 10 86712359 64%

55,782,061 557,820,605
(b) Last market price on the date suspension of
8.4 86712359 64%
trade or 55,782,061 468,569,309 557,820,605
(c) Net Asset Value (NAV) per share as per the
14.13 86712359 64%
latest financial statements. 55,782,061 788,200,515
(c)      the volume weighted average price
(VWAP) for one year immediately preceding the
5.91 5.91 64%  
date of the notice of stockholders of the 329,671,978
proposed delisting. 55,782,061
Thank You