The Bangladesh Securities and Exchange Commission on Tuesday approved six persons as independent directors for the Dhaka Stock Exchange for the next three-year term.
The DSE had submitted a list of 18 persons in the BSEC for choosing six from them as the bourse’s independent directors by the stock market regulator.
The approval came at a commission meeting presided over by BSEC chairman M Khairul Hossain, a BSEC press release said.
The six are former Financial Institutions Division senior secretary Eunusur Rahman, Dhaka University marketing department professor Masudur Rahman, FID additional secretary (PRL) Salma Nasreen, Federation of Bangladesh Chambers of Commerce and Industry senior vice-president Muntakim Ashraf, former Bangladesh Bank economic adviser Habibullah Bahar offer at least an amount equivalent to 10 per cent of its paid-up capital or Tk 30 crore at par value, whichever is higher.
The paid-up capital of Express Insurance is Tk 39.11 crore and the company was supposed to raise at least Tk 30 crore to comply with the rules.
The insurance company sought the exemption from the BSEC.
Earlier on September 15 last year, finance minister AHM Mustafa Kamal asked 28 non-listed insurance companies to get enlisted on the stock exchanges within December.
For banks and insurance companies, the deadline for getting enlisted is three years after they become public limited companies, but these companies are not complying with the rules.
Currently, there are 78 insurance companies, life and non-life. Of them, 47 are listed on the capital market.
The commission also decided that each eligible investor who would intend to participate in the electronic subscription system must invest at least Tk 1 crore in the capital market five days before the subscription of Express Insurance starts.
The commission also levied condition on the company that the company must invest 20 per cent of the IPO proceeds in the capital market after complying with insurance rules.
The insurance company will use the IPO fund for investing in treasury bonds and other sectors, and to meet IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2018, the company’s net asset value per share and weighted average earnings per share were Tk 16.65 (revalued) and Tk 1.42 respectively.
AAA Finance and Investment Limited, IIDFC Capital Limited and BLI Capital Limited are the issue managers of the company’s IPO.
The BSEC at the meeting also approved Tk 100 crore bond proposal of AFC Agro Biotec Limited.
The face value of each unit of the bond will be Tk 10 lakh.
Only institutional investors and other eligible investors will be allowed to subscribe the bonds through private placement.
The purpose of the issue is to strengthen current capital and pay bank loans.
CAPM Advisory Limited acts as the trustee for the bond.