SEC toughens rules on minimum shares of sponsors, directors - News Summed Up

SEC toughens rules on minimum shares of sponsors, directors


Until now, the companies, of which the sponsors and directors other than independent ones do not jointly hold 30 percent shares, were barred from raising money from the stock market by offering right shares. The new decisions will now prevent these firms from issuing bonus shares as well. After announcing the decisions in a media release, the SEC issued a notification confirming the new rules and repealing the previous ones on shares held by sponsors and directors. It also said no listed company will be able to offer bonus shares for reasons other than important ones like balancing, modernisation, rehabilitation and expansion. Publication of the reasons behind issuing bonus shares and the amount of money against the reasons along with price sensitive information is a must, according to the release.


Source: bd News24 May 21, 2019 17:26 UTC



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