SEC body for merger rules for Z category firms
Star Business Report
An advisory committee of the Securities and Exchange Commission (SEC) yesterday recommended for formulating rules for merger of the similar companies presently listed with the stock exchanges under Z category.The committee also recommended that more state-owned enterprises (SoEs) should offload shares to meet the demand for quality shares in the capital market. It also recommended formulation of an supervisory board to ensure the accountability of the auditor firms. The meeting of the advisory committee, comprising of analysts, trade bodies members and other market related stakeholders, was held for the first time in a span of eight years. This body met lastly in 1999. Sources in the capital market watchdog said a securities ordinance made the provision for formulating an advisory council. But, such a committee was activated after the 1996 share scam and its activities were confined to just holding of a number of meetings. The sources said the then SEC officials were not much interested in running the committee, let alone the then committee members. But, the existing chairman of the regulator took initiative to re-activate it and formed a new 23-member committee after dissolving the previous one. The meeting sources said the committee members expressed their dissatisfaction over the auditors' role alleging that the auditors often neglect their duties during a company's financial auditing. In response, the SEC informed the committee that a draft has already been sent to the ministry concerned to form a supervisory board to bring about accountability among the auditors besides regulating them. The committee also discussed about strengthening bond trading, bringing amendments to mutual fund rules to encourage trust and pension funds, and introducing book-building system instead of initial public offerings. After the meeting, SEC Executive Director Mansur Alam said the committee members felt it necessary to bring more SoEs in the market because of the increasing demand. HC ORDERS UCB TO HOLD AGM UNB adds: A High Court company bench has directed the United Commercial Bank Ltd to hold its annual general meeting (AGM) for 1998-2002 under the chairmanship of its director MA Kalam within four months. Disposing of a case, Justice Shamim Hasnain on Tuesday passed the order condoning the delay in holding the AGM of the bank, said a press release signed by Advocate MA Samad.
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