The Dhaka Stock Exchange (DSE) will sit with the securities regulator soon with a set of proposals to dig out the listed companies' wrongdoings that affect the interest of general investors.
Before sitting with the Bangladesh Securities and Exchange Commission (BSEC), the board of the premier bourse will finalise proposals made by the market operators to stop the wrongdoings.
"We have received some suggestions from the market operators. After taking the board's approval on these suggestions, we will sit with the securities regulator," said Md. Rakibur Rahman, a DSE director.
The premier bourse held an informal meeting with the market operators on Sunday to discuss different issues which 'affect' the interest of the general investors.
The representatives of DSE Brokers Association (DBA), Bangladesh Merchant Bankers Association (BMBA), and two DSE board members and top DSE executives attended the meeting.
The participants told the meeting that many listed companies recommend bonus shares with an intention of selling such shares just after disbursement.
"The participants have proposed imposing lock-in on bonus shares of the sponsor-directors," Rakibur Rahman said.
The market operators told the meeting that many companies which had gone public with premiums were shifted to 'Z' category within one or two years of listing.
"The DSE will find out the reasons behind the degradation of such companies. We will also request the BSEC to fix a dividend policy for listed companies for the sake of general investors," Rakibur Rahman said.
He said some companies frequently recommend bonus shares. "In its proposal the DSE will prioritise the declaration of cash dividend. The amount of cash dividend must be double of the amount of stock dividend."
He said a provision should be introduced so that the sponsor-directors can sell their shares only in the block market.
"In case of selling shares by the sponsor-directors, the listed companies must comply with the condition of holding minimum amount of shares by the companies and sponsor-directors," Rakibur Rahman said.
As per the existing rules, the sponsor-directors are required to hold minimum two per cent shares compared to total paid-up capital of respective listed companies.
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