BSEC rejects Mir Akhter’s preference share proposal

The Bangladesh Securities and Exchange Commission (BSEC) has rejected the application of Mir Akhter Hossain Ltd, a construction company, to raise Tk 250 crore by issuing preference shares, according to a disclosure on the Dhaka Stock Exchange website.

Preference shares are a type of company stock that pays dividends to shareholders before common stock dividends are issued.

Most preference shares offer a fixed dividend, and their holders typically do not have voting rights, unlike common shareholders, according to Investopedia.

Although the stock market regulator did not disclose the reasons behind the rejection, it said that the commission is "not in a position to accord consent to the company for raising capital of Tk 250 crore through the issuance of redeemable, cumulative, non-convertible, non-participative preference shares."

Last year, the company decided to raise capital through the issuance of such preference shares.