The Bangladesh Securities and Exchange Commission (BSEC) has approved Pragati Life Insurance Ltd to issue stock dividends for the year ended 31 December 2021, according to the company's stock exchange filing on Monday.
In June this year, the company recommended 11% cash and 6% stock dividends for its shareholders for 2021.
It recommended bonus shares to utilise their retained earnings as capital for business expansion.
According to the disclosure, the company's board of directors has set 26 September as the record date to identify shareholders entitled to the stock dividend.
Earlier, any listed firm could issue bonus shares without requiring any approval, but recently the BSEC imposed some restrictions on issuing stock dividends to ensure proper justification.
From now on, a company needs to secure BSEC approval before issuing bonus shares.
Also, any listed firm may issue bonus shares or declare stock dividends only for balancing, modernisation, rebalancing, and expansion (BMRE), regulatory requirement to raise capital, and for profitable investment or reinvestment in the company.
Pragati Life Insurance provides life and health insurance, and pensions. It offers a wide variety of insurance products that fulfil requirements of policyholders.