BSEC seeks clarification from Sonali Life on the dividend issue

The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the stock market, has sought explanation from Sonali Life Insurance regarding its declaration of dividends for shareholders prior to initial public offering (IPO).

The BSEC, in a letter issued on Monday, asked Sonali Life Insurance whether the dividend announced on July 10 was for all shareholders on the record date or for the former shareholders.

If the dividend was announced for pre-IPO shareholders, it has been asked to submit documents in its favour.

In this regard, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim said, as per the instructions of BSEC, what will be announced in the board meeting will be available to all who hold shares on the record date.

In this case, the company do not have the opportunity to pay dividends excluding any part of the shareholders on record date. So a letter has been issued to Sonali Life Insurance seeking clarification on last year’s dividend, he said.

The board of Sonali Life, which started trading on June 30, held a dividend meeting on July 10. At that meeting, the company’s board announced a dividend of 10 percent for 2020 and 2 percent interim dividend for the first quarter of this year.

Of the dividend, 10 percent will be paid by shareholders on December 31 last year, meaning that shareholders prior to the IPO, according to price-sensitive data.

The remaining 2 percent will be received by all shareholders on the day of the record date (August 4), the company said.