DBA Demands Share Buyback Provision in Amended Company Act
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৯-৯-২০২৬ দুপুর ৩:২১
DBA Demands Share Buyback Provision in Amended Company Act
The DSE Brokers Association of Bangladesh (DBA) has recommended incorporating necessary provisions for share buybacks, as well as mergers and acquisitions (M&A) for listed companies, in the proposed third amendment to the Companies Act, 1994, to make the country's capital market more dynamic, efficient, and investor-friendly.
A written recommendation signed by DBA President Saiful Islam was sent on Wednesday (September 9) to Commerce Secretary Md. Ataur Rahman Khan. A copy of the letter was also forwarded to Masud Khan, Chairman of the Bangladesh Securities and Exchange Commission (BSEC), for his kind information.
In its proposal, the DBA emphasized that creating a legal framework for listed companies to buy back their own shares is essential to vibrant capital market operations. To achieve this, the organization advocated incorporating relevant provisions into the amended Companies Act while empowering the BSEC to formulate, implement, supervise, monitor, and enforce corporate governance surrounding share buyback rules and regulations.
Similarly, to eliminate existing complexities and lengthy legal procedures involving the M&A process of listed entities, the DBA recommended bestowing full regulatory authority upon the BSEC to draft and execute necessary rules.
The association argued that as the statutory regulatory authority for the stock market and listed firms, the BSEC should hold the mandate to establish a clear and effective regulatory framework for crucial financial operations like share buybacks and M&As. Empowering the commission would facilitate faster decision-making, effective oversight, transparency, and robust corporate governance.
According to the DBA, introducing modern and effective regulations in these areas will streamline corporate restructuring and capital management for listed companies. Furthermore, it will enhance market liquidity and bolster the protection of interests for investors and other stakeholders.
The DBA expressed confidence that its recommendations would be given due consideration in the third amendment to the Companies Act, 1994, to align with the government's objectives for market modernization, development, and investor protection.
Best News desk
৯-৯-২০২৬ দুপুর ৩:২১
The DSE Brokers Association of Bangladesh (DBA) has recommended incorporating necessary provisions for share buybacks, as well as mergers and acquisitions (M&A) for listed companies, in the proposed third amendment to the Companies Act, 1994, to make the country's capital market more dynamic, efficient, and investor-friendly.
A written recommendation signed by DBA President Saiful Islam was sent on Wednesday (September 9) to Commerce Secretary Md. Ataur Rahman Khan. A copy of the letter was also forwarded to Masud Khan, Chairman of the Bangladesh Securities and Exchange Commission (BSEC), for his kind information.
In its proposal, the DBA emphasized that creating a legal framework for listed companies to buy back their own shares is essential to vibrant capital market operations. To achieve this, the organization advocated incorporating relevant provisions into the amended Companies Act while empowering the BSEC to formulate, implement, supervise, monitor, and enforce corporate governance surrounding share buyback rules and regulations.
Similarly, to eliminate existing complexities and lengthy legal procedures involving the M&A process of listed entities, the DBA recommended bestowing full regulatory authority upon the BSEC to draft and execute necessary rules.
The association argued that as the statutory regulatory authority for the stock market and listed firms, the BSEC should hold the mandate to establish a clear and effective regulatory framework for crucial financial operations like share buybacks and M&As. Empowering the commission would facilitate faster decision-making, effective oversight, transparency, and robust corporate governance.
According to the DBA, introducing modern and effective regulations in these areas will streamline corporate restructuring and capital management for listed companies. Furthermore, it will enhance market liquidity and bolster the protection of interests for investors and other stakeholders.
The DBA expressed confidence that its recommendations would be given due consideration in the third amendment to the Companies Act, 1994, to align with the government's objectives for market modernization, development, and investor protection.
