DSE rejects MJL listing

The board of directors of the Dhaka Stock Exchange on Sunday rejected the listing application of Mobil Jamuna Lubricants Ltd.

The board, headed by DSE president Shakil Rizvi, rejected the company's latest proposal that it would issue 30 per cent bonus share to all shareholders before listing.

A source in the meeting told New Age that even if the company issued 30 per cent bonus share, price earning ratio of a share would remain over 60, meaning the price was still too high.

He said that with the rejection of the DSE, the company might have to refund the initial public offering subscription fees to the shareholders as the deadline to settle the listing issue is April 14.

The company's IPO process and listing issue fell into controversy after the January's stock market debacle as stock market experts and general investors criticised the company for its over-priced shares, which was set by the controversial book-building method.

The MJL on January 2 went for initial public offering with a share price of Tk 152.40 under the book-building method with a condition set by SEC that the company would buy back its shares if the price of share comes down below the issue price.

After the government suspended book-building method on January 20, The SEC on March 22 asked DSE to list the company with a condition that it would compensate the shareholders from its premium account if the share price comes below the issue price in six months. There was legal complication to go for buy-back as the existing rules do not support such move.

The DSE board, however, on March 24 rejected the listing application of MJL Bangladesh under the SEC condition saying that the relevant rules do not support such compensation.

The SEC extended the MJL listing time by 15 days as per the company application as the original deadline was supposed to expire on March 31.

After holding some informal discussions with some DSE directors, the company informed DSE that it would issue 30 per cent bonus shares for shareholders to bring down the share price to around Tk 116.

'The board finally decided to reject the listing of the MJL today [Sunday] as the issue became very complicated,' said a director of the bourse.

The director also said that in the probe committee report there was heavy criticism of the book building method and recommendation to reform it. 'As the method is currently suspended so it would be wise not to enlist the company at this moment,' he said.

Source: New Age

Probe report to be published soon: Muhith

The finance minister, AMA Muhith, hoped that the probe report on the share market scam would be published very soon which he earlier said it would take 10 to 15 days.

He also said his ministry would 'edit' parts of the probe report on stock market scam that requires further investigation before making it public.

'The ministry has taken the responsibility for looking into the whole report, as it does not needlessly want to play any part in humiliating anybody,' he said.

The finance minister was speaking to reporters after a pre-budget meeting with the parliamentary standing committees on finance, planning, public accounts and government affairs at the NEC conference hall on Sunday.

Muhith made the comments apparently in a bid to appease the critics who expressed doubt that the government would deliberately delete the names of those widely suspected involved in the scam as they are MPs and pro-government businessmen.

Claiming that a section of the media misquoted him, Muhith categorically ruled out comments attributed to him that influential people of the stock market were mightier than the state.

'On the day the probe committee submitted its report, I just said the government, if necessary, might not publish unverified information.'

'But, without understanding my comments, it has been published and circulated that I would publish the report omitting the names, which is not correct and realistic,' added the finance minister.

Muhith said the finance ministry would evaluate the probe report and conduct further investigation according to the recommendations put forward.

'Before making public, the parts of the probe report on stock market scam that require further investigation will be edited. The ministry does not needlessly want to play any part in humiliating anybody's character,' he said.

Source: New Age

Stock investors denied justice: BNP

The BNP standing committee member, Nazrul Islam Khan, on Sunday said the investors in the capital

market had been denied justice and alleged that ruling party men had been involved in the share market scam.

'The helpless small investors, who did not get justice from the government, are now seeking justice from Allah,' he said while addressing a discussion meeting marking at city's Bhasani auditorium.

Demanding disclosure of the names of the masterminds of the share market scam, the BNP leader said he dad doubt if the government would make public the names of the masterminds involved in the scandal as the ruling party leaders themselves had been involved in it.

The discussion was organised making the death anniversary of Jatiyatabadi Sramik Dal's Dhaka city unit leader Shahidul Islam Chowdhury.

Nazrul Islam Khan, also the president of Sramik Dal, BNP's front organization, vented his anger at the inertia of the party activists and announced that a new committee of the organisation would soon be named making room for dedicated leaders and activists.  

He lamented that the presence of Sramik Dal leaders and activists were hardly visible in any important programme of the BNP.

Nazrul accused the government of transferring pro-BNP workers to the offices outside Dhaka.

The BNP alleged that the government had failed to implement any of its election pledges causing resentment among the people.

He also accused the government of signing 'anti-state' agreements to serve the interests of its 'foreign masters' who, he said, had brought them to power.

Presided over by Dhaka city Sramik Dal president Rehan Ali, the meeting was also addressed, among others, by Sramik Dal general secretary Jafrul Hasan, senior vice-president Abul Kashem Chowdhury and organising secretary Nurul Islam Nasim.

Source: New Age