SEC extends time for securities firms to become limited cos
BDNEWS, Dhaka
The Securities and Exchange Commission (SEC) yesterday extended the deadline for conversion of proprietorship-based securities firms into limited companies by six more months, official sources said. The deadline was earlier set at December 31, 2005. The decision to extend the time was taken at an SEC meeting following a request by Dhaka Stock Exchange (DSE). The SEC also extended the deadline for separation of brokerage and dealership functions by another year to September 2006. Besides, the SEC allowed the proprietorship-based firms to deposit securities like shares and bonds worth Tk 2.5 million as capital in place of equivalent amount of cash for conversion into limited companies, sources said. When asked, Mansur Alam, executive director of the SEC, told the news agency that the time was extended following a DSE request for it on the ground that it would be difficult for some companies to comply with the December 31, 2005 deadline. Sources said nearly 90 brokerage firms affiliated with the DSE are proprietorship-based, while 83 others have been transformed into limited companies. Besides, more than 100 firms are performing both brokerage and dealership functions, sources said. "Separation of the brokerage and dealership functions will reduce the conflict of interests," said Mansur Alam.
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