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BSEC Mandates Physical Presence for Corporate Accountability at Shareholder Meetings

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To uphold accountability to shareholders, the stock market regulator has stipulated that a minimum of 25% of board members, including the chairman and managing director, must be physically present at the general meeting of a listed company.

The Bangladesh Securities and Exchange Commission (BSEC) took this directive on December 28 of the preceding year, mandating listed firms to conduct their annual general meetings (AGMs) and extraordinary general meetings (EGMs) with the physical presence of shareholders. The decision was prompted by the observation that a majority of companies were exclusively conducting their general meetings through digital platforms, contrary to BSEC directives, as per sources within the BSEC.

Rezaul Karim, the spokesperson for BSEC, emphasized, “In accordance with commission rules, companies are obligated to conduct general meetings both physically and online. Shareholders desiring physical attendance should have the option, and those opting for online participation should be accommodated. Ensuring corporate governance, shareholders must be provided the opportunity to express their views during the AGM. Companies failing to adhere to BSEC instructions will face necessary actions.”

On March 10, 2021, BSEC issued guidelines for AGMs and EGMs, introducing a hybrid system allowing listed firms to conduct meetings with both physical and online participation of directors and shareholders.

Sources within BSEC reveal concerns about companies neglecting the hybrid system due to a lack of supervision by stock exchanges. The commission is poised to inquire into the negligence of both the Dhaka and Chattogram bourses.

Insiders suggest that some companies exploit the opportunity to hold meetings online as a cover-up for irregularities. The avoidance of in-person meetings helps sidestep shareholder inquiries, particularly for companies accused of manipulations in the capital market.

In 2020, amidst the COVID-19 outbreak, the regulatory body had initially ordered companies to organize any type of meeting, including AGM and EGM, using online platforms. Anonymously, a member of the Bangladesh Association of Publicly Listed Companies highlighted the ease of shareholder participation and cost-effectiveness with digital platforms. He noted that companies sometimes pass agendas without allowing shareholder views via digital platforms, asserting that physical meetings prevent such avoidance.

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6 Stock Market Giants Awarded National Export Trophy

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In recognition of their contributions to foreign exchange earnings and job creation for the fiscal year 2021-22, 77 companies received the National Export Trophy. Among them, six companies are listed on the country’s stock market, spanning various sectors.

Prime Minister Sheikh Hasina presented the trophies to the representatives of these companies at a ceremony held at the Osmani Memorial Auditorium in the capital on Sunday, July 14.

The awarded listed companies are:

Pharmaceuticals:

Gold Medal: Beximco Pharmaceuticals
Bronze Medal: Square Pharma

Textiles:

Silver Medal: Square Textiles Limited

Ceramics:

Gold Medal: Shinepukur Ceramics

Electronics:

Gold Medal: Walton Hi-Tech Industries

EPZ-Based 100% Bangladeshi-Owned Garment Industry (Knit and Woven):

Bronze Medal: Shama Denims

The ceremony was also attended by State Minister for Commerce Ahasanul Islam Titu, Chairman of the Parliamentary Standing Committee on Commerce Tipu Munshi, Commerce Secretary Md Selim Uddin, Vice Chairman of the Export Promotion Bureau (EPB) Md Anwar Hossain, and President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam.

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Bearish Market Sees Rally for 3rd Consecutive Day

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Dhaka Stock Market DSE, Bourse on the first working day of the week, 14th July, ended with a losing performance in Indices and Turnover from the previous working session. This information is known from DSE sources.

622 crore 25 lakh taka shares were traded on this day. 42 crore 3 lakh less tradings were done in DSE today compared to the previous workday, July 11th, Shares worth Tk 664 crores 28 lakh shares were traded last time, Thursday.

The benchmark DSEX decreased 23.99 points or 5,482 The Shariah-based index DSES lost 4.82 points or 1,202 and the blue-chip index DS30 dropped by 5.24 points or 1,937.

Of the issues traded, 70 advanced, 297 declined and 30 remained unchanged.

Far Chemicals Industries Limited ranked top gainer on DSE, the share price increased by Tk 2.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 22.50 paisa.

Sonali life Insruance Company Limited ranked top loser on the DSE, the share price dropped by Tk 2.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 74.40 paisa.

DSE topped on trade is Taufika Food & Loevello Ice Cream PLC Limited 27 crore 90 lakh takas of company shares have been traded.

A total of 47 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 2 crore 3 lakh 99 thousand 277 shares of the companies were traded. The financial value of which is 43 crore 18 lakh taka

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Techno Drugs Debuts on DSE with 10% Share Price Jump

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Pharmaceutical manufacturer Techno Drugs Limited has commenced trading on the Dhaka Stock Exchange (DSE) today, Sunday, July 14, following its initial public offering (IPO) under the book building method. This information was confirmed by DSE sources.

Listed under the Pharmaceuticals and Chemicals sector, Techno Drugs’ trading code on the DSE is ‘TECHNODRUGS,’ and the company code is 18499.

The company’s shares began trading at Tk26.40 each.

Techno Drugs raised Tk1 billion through its IPO, with a total subscription of Tk24.87 billion . Of this, Tk24.12 billion came from general investors, and Tk611.75 million from eligible investors.

The IPO subscription period ran from June 9 to June 13. The company set the cut-off price at TK34 per share, with shares being offered to investors at a 30% discount, or Tk24 per share.

Shares were allocated to IPO applicants on July 2, 2024, with more applications received than available shares, resulting in a proportional allocation. Domestic investors who applied for shares worth Tk10,000 received 11 shares each, while those who applied for shares worth Tk1 million received 1,166 shares each.

In contrast, expatriate Bangladeshi investors received 20 shares for every Tk10,000 applied for, and 2,016 shares for every Tk1 million applied for.

The company plans to use the IPO proceeds to purchase new machinery, for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) at its Narsingdi factory, construct a building at its Gazipur factory, partially repay loans, and cover issue management costs.

According to the audited financial statements for the fiscal year ending June 30, 2023, the company’s net asset value per share (NAVPS) was Tk27.74 , including revaluation, and Tk22.57, excluding revaluation.

For the fiscal year in question, Techno Drugs reported earnings per share (EPS) of Tk2.08 , with a weighted average EPS of Tk3.25 over the past five years.

Imperial Capital Limited and EBL Investments Limited are managing the IPO issue.

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