DHAKA: Securities Exchange Commission (SEC) rejected the time extension pleas of directors and sponsors of listed companies for minimum shareholding.
The decision was taken in the 437th meeting of SEC held in the city Tuesday.
A press release signed by SEC executive director M Saifur Rahman disclosed the matter.
On June 21, the High Court rejected writ petitions filed by 24 directors challenging section 2CC of Securities Exchange Commission (SEC) ordinance that allows the regulator to ask for minimum shareholding.
The HC order again makes valid the SEC circular for holding two percent stake in their companies by individual directors and 30 percent by sponsor-directors together.
On November 22, the SEC in a meeting decided that sponsors, promoters and directors must hold 30 percent stake in listed companies within six months which is expiring May 21.
On April 8, Sheikh Abdul Momin, who applied to be a director of the NCCBL, had filed a writ petition challenging the legality of the SEC circular. Besides, a number of directors of Delta Life Insurance and Social Islami Bank Limited also filed the same pleas.
BDST: 2155 HRS, JUN 26, 2012
Edited by: Abul Kalam Azad, Newsroom Editor
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