Confusion has gripped the stock market over the fate of the sponsor-directors, who own less than 2.0 per cent shares of their respective listed companies, following the rejection of the writ petitions on the issue by the High Court (HC) Monday last.

The Securities and Exchange Commission (SEC) officials Tuesday declined to say anything until they received the certified-copy of the HC verdict on the issue.

The deadline for acquiring minimum two per cent shares by the sponsor-directors ended Monday last. The HC found the SEC notification legally tenable.

SEC spokesperson and executive director Mohammad Saifur Rahamn said, "The commission won't say anything regarding the status of the sponsor-directors having less than two per cent shares until it receives the certified-copy of the verdict."

Meanwhile, being confused over the prevailing situation general investors expressed their concern at the present situation in the stock market. "It's really confusing situation. We don't know what has happened following the court verdict," Himal Ahmed, a general investor, told the FE.

Like Ahmed, some other general investors also expressed their concern over the present situation.

Former SEC Chairman Faruq Ahmad Siddiqi said, "It's not logical if the SEC says nothing about the present status of the sponsor-directors who own less than 2.0 per cent shares of their respective companies.

Another former SEC Chairman Mirza AB Azizul Islam said the regulator should extend the timeframe for purchasing shares by sponsor-directors for the sake of a practical solution.

He also said it will be really a confusing situation if the regulator is unwilling to speak anything before getting the certified copy of the verdict.

"I think it would be a practical solution for the SEC if it extends the deadline for acquiring the required volume of shares," Mr. Islam told the FE.

On Monday, a Division Bench of the HC, comprising Justice Farid Ahmed and Justice Sheikh Hassan Arif rejected the writ petitions that challenged the legality of the directive of the SEC on holding of the minimum two per cent shares by sponsor-directors individually.

Meanwhile, the same bench Tuesday asked the securities regulator to settle within one month the matter with a director of NCC Bank, named, Nurul Islam who filed a writ petition as the SEC did not respond to his application for purchasing the required volume of shares within six years instead of six months.

Attorney General Mahbubey Alam said the court also asked the petitioner to go to the securities regulator.

"The HC has also asked the securities regulator to explain within four weeks as to why the petitioner's application will not be settled," Deputy Attorney General Motaher Hossain Saju told the FE.