Power Over IPO Process
Body formed to scrutinise bourses’ proposal
The Bangladesh Securities and Exchange Commission has formed a three-member committee to review the proposed listing regulations of the Dhaka and Chittagong stock exchanges that sought some power over initial public offering process. BSEC executive director Saifur Rahman told New Age that the commission had formed the committee on Tuesday to scrutinise the proposed listing regulations of the stock exchanges analysing the existing rules.
The committee is led-by BSEC executive director Md Anwarul Islam. Its other two members are BSEC executive director Md Mahbubul Alam and director Md Abul Kalam.
The regulator asked the committee to submit a report within the next 10 working days.
In line with the practice of the developed markets the Dhaka Stock Exchange in its draft listing regulations proposed empowering itself over the initial public offering by setting requirement for the companies to get no-objection certificate from the bourses before placing a proposal of IPO to the commission.
The DSE also sought power to visit companies and send its observations over the company’s financial statements to the BSEC.
The capital market regulator has taken the move as it has been facing strong criticisms from different quarters regarding IPO approval.
It is a worldwide practice that the capital market regulator by laws is not liable for any sort of financial soundness of the companies it approves for IPOs, the BSEC official said.
-With New Age input
