SEC needs to be satisfied with companies' files

FE Report

The companies willing to split the face value of their stocks from Tk. 100 to Tk. 10 will get the regulator's nod upon examination of their track record, a member of the Securities and Exchange Commission (SEC) said.

The member said the companies, which already completed formalities to split the face value, would get the SEC approval as early as possible if the regulator is pleased with their track record.

The SEC said this Monday after getting a consent letter from the finance ministry, which paved the way of splitting the face value of the listed companies' shares.

At the same time, the SEC published a notification Monday regarding the face value split in accordance with the letter of the finance ministry.

The SEC got the letter after finance minister AMA Muhith Sunday signed the summary proposal, which was sent by the SEC on April 7 last.

SEC member Mansur Alam said the regulator would act in accordance with the directive of finance ministry.

"From now on, there will be no bar to split the face value of the listed companies' shares," he said.

Mansur Alam said, "The SEC will permit the companies to split the face value following completion of all necessary formalities, which might be done in the companies' annual general meetings (AGM) or extra general meetings."

Recently, 10 companies sought the SEC permission to split their shares' face value from Tk. 100 to Tk. 10.

Afterwards, the SEC sent a proposal to the finance ministry seeking its permission to split the shares' face value depending on the willingness of the companies.