The country's premier bourse Thursday submitted a series of reform proposals to the Securities and Exchange Commission (SEC) for regulatory approval aimed at ensuring more transparency and accountability in the stock market.
A four-member DSE team led by its president Rakibur Rahman, submitted the proposal to the SEC.
The reforms proposal included introduction of premium ('P') category with existing five which would the highest category in the market on the basis of performance of the company.
DSE proposed to revise share holding ceiling for investors to be a director, holding 2 per cent shares of the respective company instead of existing 5 per cent if there is any vacant.
They proposed the SEC to allow the sponsor-directors to sell their shares only through the block market, instead of existing public market.
The DSE also proposed total exemption of BO (beneficiary Owner) accounts renewal fee. The companies, excluding service sector firms, can not utilise more than 30 per cent fund of the IPO to repay bank loans, and rest 70 per cent should be used for company's expansion.
The DSE board also proposed to bring some changes to its listing rules especially for companies that will go for initial public offering (IPO) with premium prices.
Earlier, the DSE board approved these proposals. "We hope the securities regulator will consider our reform proposals and it would come into effect only after regulatory approval," said Mr Rahman.
"If the reform measures are implemented with regulatory approval, transparency and accountability would be ensured and the market would be more stable," he said.
Ahmad Rashid, senior-vice president, Md Shajahan, vice president, and Dr. Musharraf M. Hussain, chief executive officer, were present at the meeting.
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