The Bangladesh Securities and Exchange Commission (BSEC) has removed the requirement for prior approval from the commission for trading or transferring shares or equity securities held by sponsors and directors of Z-category companies.

The decision was taken at the BSEC’s 1,027th commission meeting on Tuesday (September 1), chaired by Commission Chairman Masud Khan. The commission reviewed and amended the relevant provisions of its directive issued on May 20, 2024.

Under the revised decision, sponsors and directors of Z-category companies will no longer need prior BSEC approval to trade or transfer their shares. The requirement will also not apply to the transfer of shares confiscated due to loan default or shares transferred to heirs following the death of a shareholder.

The respective stock exchanges will take necessary measures for such share transactions and transfers in accordance with their listing regulations, according to a BSEC press release signed by Executive Director and spokesperson Md. Abul Kalam.

Meanwhile, the commission has introduced new rules concerning the payment of dividends to foreign shareholders of listed companies.

Declared dividends must be remitted to foreign shareholders within 30 days of obtaining a tax exemption certificate under the Double Taxation Avoidance Agreement from the National Board of Revenue (NBR), and before the end of the relevant financial year.

However, dividends must first be distributed among local shareholders before being remitted to foreign shareholders. The company must then submit an initial dividend compliance report.

A final dividend compliance report must be submitted to the BSEC and the relevant stock exchange within 30 days of remitting the dividend to foreign shareholders.