Tuesday, March 21, 2017

No more direct listing for private companies

Bangladesh Securities and Exchange Commission mull a regulatory measure which would not let private companies join the bourses under the direct listing system in a bid to protect the investors and the capital market’s interests. In direct listing system, a company could be listed on a stock exchange without increasing existing paid-up capital.

The authorities issued the directive after a company Aman Cement Mills sought permission to be listed in the premier bourse directly which was earlier misused before the price crash of 2011. A probe committee found that stock market was affected by listing of companies with inflated prices.

Direct listing system was introduced in 2006 and five state-owned companies and five private companies joined the bourses by offloading shares since then.

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