Entitlement for rights shares
Shareholders entitled for rights shares will now have to apply
within the stipulated timeframe by fulfilling the offer documents as the
regulator cancelled its earlier directive, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) said this in a fresh directive issued on March 4 last.
Earlier, on October 12, 2011 the securities regulator issued a directive asking the listed companies to resolve the complaints of shareholders, who fail to receive offer documents of rights shares timely, within 60 days after the completion of subscription period.
BSEC commissioner Arif Khan said in 2011 the incumbent commission created the scope of evaluating shareholders' complaints on failure of getting offer documents during the subscription period.
"Our initiative acted well and presently the number of claimants on failure of receiving the offer documents has reduced noticeably. That's why the regulator lifted its earlier directive for the sake of completing the subscription of rights shares within stipulated timeframe," Mr. Khan said.
He said the regulator has also ensured the availability of getting offer documents promptly.
"As per our directive, the listed companies must publish the prospectus of the rights issue in four news papers along with sending offer documents to shareholders through courier service," Khan said.
"Nevertheless, the regulator will observe the outcome of the fresh directive."
The subscription period of rights issue varies from 15 days to 30 days. Shareholders entitled for rights shares will have to apply for rights shares within such timeframe.
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