DHAKA: The High Court has declared illegal the circular of Bangladesh Security Exchange Commission (BSEC) over minimum two percent shareholding of directors.

An HC bench comprising Kazi Rezaul Haque and Justice Altaf Hossain passed the order Wednesday.

Earlier, the stock regulator made it compulsory for the sponsors, directors and promoters to acquire at least a two percent stake individually. 

The directive on minimum shareholding was meant to stop sales of shares by sponsors and directors and to create a buying pressure in the stock market for the benefit of general investors.

BDST: 1645 HRS, MAY 14, 2014