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“General Meetings should be televised: queries over phones & faxes”

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February 13, 2001 

Dhaka--(UNB)- The capital market watchdog will decide whether the listing of companies on the Stock Exchange will be mandatory or voluntary after consulting trade bodies as controversies arose.

“We’re listening to both the owners and investors to reach a balanced midway,” Chairman of the Securities and Exchange Commission Manir Uddin Ahmad said after meeting with Foreign Investors Chamber of Commerce and Industry (FICCI) yesterday (Monday).

The draft notification is intended to bring in some good shares in the market to boost the capital market as well as attract foreign investment to secondary capital market, he added.

Earlier, the SEC met the Metropolitan Chamber that said listing should be kept voluntary.

The SEC will formally talk to the FBCCI and Dhaka Chamber to have their views on the draft notification on the listing.

“We haven’t yet finalized the issue,” the chairman told the representatives of foreign companies.

FICCI members pointed to the problems in holding AGM, hurdles in getting fiscal incentives and tax rebates as listed companies and delay in implementing CDS on stock market.

The SEC in a public notification made it compulsory for all public limited companies having paid-up capital of Tk 5 crore or more with accumulated loss not exceeding 20 per cent of their paid-up capital to get enlisted with any Stock Exchange.

Making the notification public on December 22, it invited recommendations and comments within two weeks. But no chamber or trade bodies responded so far, prompting the SEC to go for meeting the chambers separately.

FICCI president Wali Bhuiyan, while explaining his chamber’s position on the listing yesterday, said the decision of being enlisted with Stock Exchange should be left to the companies.

In response, the SEC chairman said chambers say listing should be voluntary while the investors say nothing happens unless any decision is made compulsory. “So we’ll have to make a balance.”

Even if it is made optional, it does not mean that companies will not get enlisted.

After being enlisted, it will be the company’s individual decision when it will sell its shares.

Representative of a multinational alleged that his company was not getting fiscal incentives and tax rebates for technical reasons although it is a listed company.

The SEC Chairman took account of the point and said he would propose a budgetary provision ensuring proper incentives for listed companies, no matter they are traded or not.

As Wali Bhuiyan referred to problems faced by the companies in holding annual general meetings and suggested AGM should be televised allowing queries over phones and faxes, the SEC Chairman said this could be done after amending the existing laws.

Monir Uddin Ahmad expressed his concern over delays in implementing the central depository system on the stockmarket.

“It is expected that CDS will run by June. But the way it is going now, I’m in doubt,” he told the foreign investors, who felt the CDBL should be run by full-time professionals, not necessarily by any chamber president as preferred by SEC.

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