BSEC Chairman Professor Shibli Rubayat-Ul-Islam. Photo : Collected
The Bangladesh Securities and Exchange Commission (BSEC) is finally going to implement the buyback law in the capital market. According to BSEC sources, the law has already been drafted. After the due process, it will be effective in the capital market.
Recently, State Minister for Commerce Ahasanul Islam Titu and BSEC Chairman Professor Shibli Rubayat-Ul-Islam held a fruitful meeting in this regard. At the meeting, Titu agreed to implement the buyback act.
Investors have long been demanding the implementation of the law. The BSEC drafted the act, but it could not be implemented due to various reasons.
The BSEC chairman said the buyback system is in effect in many countries of the world. However, it is absent in the existing company law in Bangladesh.
According to the buyback act, if the share price of a company falls, its authorities must buy those shares back. If the law is implemented, ordinary investors will not have to suffer anymore.
A senior BSEC official said in this regard, “The commission has started finalising the buyback law. We want to incorporate only the buyback part in the Companies Act. When and how the buyback will happen will be set in the BSEC act.”
Investors believe major changes will take place in the stock market through the enactment of the law. It will increase the confidence of investors in the stock market. Also, if a company enters the market with false information and its share price later falls, it has to buy back those shares.
Buyback or share repurchase is a provision. Under this, if the share price of a company falls below the offer price (including premium), the company will be obliged to repurchase shares from investors through the stock exchange.
Messenger/Disha
