The securities regulator has allowed the listed companies to recommend and distribute interim cash dividend from retained earnings subject to fulfilment of other rules and requirements.
The Bangladesh Securities and Exchange Commission (BSEC) said this on Sunday in a clarification of its previous directive regarding dividend disbursement.
Previously, the listed companies could not recommend and disburse the interim dividend from retained earnings.
The securities regulator has paved the way for recommending interim dividend following the proposals made by investors and listed companies.
"The listed companies will be able to recommend and distribute interim cash dividend from retained earnings based on the latest financial statement subject to adjustment of quarterly losses or keeping provisions," the BSEC said in its clarification.
It also said there is no mandatory requirement of auditing the quarterly statements in case of distributing interim cash dividends.
Mohammad Rezaul Karim, a spokesperson of BSEC, said that after distributing cash dividend from retained earnings, the listed companies will have to take approval for an interim dividend at the annual general meeting (AGM).
