Provisions of Conversion into Public Limited Company and Mandatory Listing

(As per BSEC notification No. SEC/CMRRCD/2006-159/36/Admin/03-44 dated May 05, 2010 and published in the Bangladesh Gazzette on June 1, 2010)

Conversion:

• A private limited company shall, complying due legal process, convert itself into a public limited company in any of the following cases:
  1. Within six months from the date its existing paid up capital and the further capital it intends to raise exceeds, in total, taka forty crore; or
  2. Within twelve months from the date of publication of the notification in the official gazette, in case its existing paid up capital has already exceeded, in total, taka forty crore.

Mandatory Listing:

• A public limited company, including the said converted public limited company, whose paid up capital exceeds taka fifty crore shall, complying due legal process, apply to the Commission for making an issue of capital through public offering to the extent prescribed by the Commission from time to time:
  1. Within one year from the date of its paid up capital exceeds taka fifty crore, or from the date of publication of this notification in the official gazette, whichever comes later, if it has already been in commercial operation for three years or more; or
  2. Within three years of commencement of its commercial operation, if it has not yet commenced its commercial operation.
  [Note: The date recorded with the taxation authority about commencement of commercial operation shall be considered the date for this purpose.]

Exemption:

• Bangladesh Securities and Exchange Commission vide its Notification No.SEC/CMRRCD/2009-193/170/Admin/60 dated June 11, 2015, grants exemption to the foreign owned companies and the joint venture companies with foreign investment from the compliance of the Commission's Notification No. SEC/CMRRCD/2006-159/36/Admin/03-44 dated May 05, 2010, published in the Bangladesh Gazzette on June 1, 2010.