Insurance entrepreneurs want more time to hold 60 percent shares
Own Correspondent: Entrepreneurial managers of insurance companies want more time to hold 60 percent shares. Leaders of the Bangladesh Insurance Association (BIA), an association of insurance owners, made the remarks at a formal meeting with the Insurance Development and Regulatory Authority (IDA), the insurance regulator.
This was stated by IDRA spokesperson Shakil Akhter after a meeting at the IDRA building on Thursday (November 4) to determine the strategy for implementing the 80 per cent shareholding law of the insurance company’s entrepreneurial directors.
IDRA chairman said. The meeting was chaired by Mosharraf Hossain Hossain and was attended by BIA leaders.
An IDRA spokesman said insurance companies would not be able to hold 80 per cent of the shares right now. The insurance association has asked for more time for this. That is why the companies have not been given a deadline to hold 80 per cent shares.
It may be mentioned that according to the insurance law passed in the parliament in 2010, entrepreneurial directors have to hold 60 percent shares. IDRA took new initiatives to implement the law.
On June 20, the chairman of the IDRA said at an event organized by the Insurance Reporters Forum (IRF) on the implementation of the law, “Therefore, we are strictly monitoring the list of unlisted companies. However, since listed companies have to buy shares from the secondary market, there are some complications. But since it is in the law, the law must be obeyed. ”
The IDRA chairman’s announcement raised the share prices of insurance companies listed on the stock exchange. As the share price of the companies increased, the directors of the companies started announcing the sale of shares to take capital gain from the stock market. As a result, the share of the sector fell sharply. This continues to increase the frustration of investors.
In response, the stock market regulator BSEC imposed a ban on the sale of shares by insurance company directors.
On the other hand, IDRA writes letters to the insurance companies asking them to know how many shares they have. In continuation of this, a meeting was held on Thursday to determine the law enforcement strategy of the insurance entrepreneur managers regarding the holding of 60 percent shares.