The new system would allow stock brokers, merchant banks and
Bangladesh Bank (NRB and foreign applicants) - designated ‘depository
participants’ (DPs) - to accept share applications.
The new structure would take effect from July 15, the BESC said in a media release on Wednesday. The new policy was approved at the SEC’s regular meeting .
At present, companies assign banks the job of accepting applications and collecting the share money. For this, the banks get a commission (10 paise for every Tk 100).
The Commission maintains that working through the DPs would lessen procedural burden. In this system, the security money for the IPO would be kept with the DPs, who will block the amount after the applications are received.
The money cannot be withdrawn, transferred or used for buying shares till the IPO lottery is held.
The lottery over, the DPs would send the relevant sum to the company.
If an applicant fails to get an allotment, the money would be unlocked and paid back.
At present, an applicant missing an allotment has to go through a tortuous refund process.
The release says a pilot project would be launched from 15 July and all listed stock brokers have been asked to make the necessary arrangements.
The new structure would take effect from July 15, the BESC said in a media release on Wednesday. The new policy was approved at the SEC’s regular meeting .
At present, companies assign banks the job of accepting applications and collecting the share money. For this, the banks get a commission (10 paise for every Tk 100).
The Commission maintains that working through the DPs would lessen procedural burden. In this system, the security money for the IPO would be kept with the DPs, who will block the amount after the applications are received.
The money cannot be withdrawn, transferred or used for buying shares till the IPO lottery is held.
The lottery over, the DPs would send the relevant sum to the company.
If an applicant fails to get an allotment, the money would be unlocked and paid back.
At present, an applicant missing an allotment has to go through a tortuous refund process.
The release says a pilot project would be launched from 15 July and all listed stock brokers have been asked to make the necessary arrangements.
