The two bourses of
the country will appeal on Thursday to become respondents to the three
writ petitions filed with the High Court challenging a Securities and
Exchange Commission circular on holding of shares by directors and
sponsor directors.
Presidents of Dhaka Stock Exchange Rakibur Rahman and Chittagong Stock Exchange Al Maruf Khan told reporters about the decision after meeting SEC Chairman M Khairul Hossain and other members at his office on Wednesday afternoon.
"We'll voluntarily move the petition tomorrow (Thursday) to be included in the list of respondents to the writ petitions in order to safeguard public interests," the CSE president said after the hour-long meeting.
After hearing the three petitions, one on Monday and the others on Tuesday, the High Court issued rules asking the SEC why the circular, which mandated holding specified number of shares for directors and sponsors of companies listed on the capital market, should not be declared illegal. The SEC has been given two weeks to respond.
However, the court had rejected the plea to stay the operation of the circular.
It will hear the three petitions the same day after getting SEC's response.
On Nov 22 last year, the SEC had issued the circular saying sponsor-directors of each listed company together must hold at least 30 percent of the paid-up capital. The minimum share holding by individual directors was set at 2 percent.
It gave six months to fulfil the requirements. The deadline is May 21.
Presidents of Dhaka Stock Exchange Rakibur Rahman and Chittagong Stock Exchange Al Maruf Khan told reporters about the decision after meeting SEC Chairman M Khairul Hossain and other members at his office on Wednesday afternoon.
"We'll voluntarily move the petition tomorrow (Thursday) to be included in the list of respondents to the writ petitions in order to safeguard public interests," the CSE president said after the hour-long meeting.
After hearing the three petitions, one on Monday and the others on Tuesday, the High Court issued rules asking the SEC why the circular, which mandated holding specified number of shares for directors and sponsors of companies listed on the capital market, should not be declared illegal. The SEC has been given two weeks to respond.
However, the court had rejected the plea to stay the operation of the circular.
It will hear the three petitions the same day after getting SEC's response.
On Nov 22 last year, the SEC had issued the circular saying sponsor-directors of each listed company together must hold at least 30 percent of the paid-up capital. The minimum share holding by individual directors was set at 2 percent.
It gave six months to fulfil the requirements. The deadline is May 21.