BSEC to conduct test run in April
The Bangladesh Securities and Exchange Commission is likely to conduct a test run on collecting initial public offering subscription fees through brokerage houses by the end of April this year. The BSEC expressed the intention at a meeting held at its office on Sunday with the Dhaka and Chittagong stock exchanges, merchant banks and asset management companies, meeting sources said.
The sources also said that the BSEC had also planned to start subscription fee collection through brokerage houses by June this year depending on the successful completion of the test run.
In the case of collecting IPO subscription fees through brokerage houses, investors will pay the IPO subscription fee through stockbrokers. A brokerage will open a separate bank account for all of its clients, the sources said.
After the collection of the fund the broker will provide IPO subscribers’ data to the issue manager and the data will be checked by the Central Depository Bangladesh Limited before the IPO lottery.
Investors, who will not get the IPO shares, will be allowed to withdraw their subscription fees after the lottery.
The brokers have to develop a system to collect the fees from the investors and they will get a certain amount of commission for the job.
In the existing system, it takes more than one and a half months to get refund if an investor fails to get shares through the lottery, the sources said.
Once the IPO subscription process through the brokerage houses starts, it will take less than 20 days to get the refund, they added.
-With New Age input
