bdnews24.com :
The capital market regulator is scrapping the provision of applications through banks for Initial Public Offering (IPO).
The Securities and Exchange Commission said in a media statement on Wednesday IPO applications now could only be placed through depository participants (DP) – brokerage houses and merchant banks – from Apr 1.
The SEC took this decision at its meeting on Tuesday.
The statement said IPO application only through depository participants would help reduce time for distribution of refund warrants.
Presently, IPO applications are usually submitted through banks.
However, applications can be placed through DP under a pilot project, which was launched on Oct 28 last year with the IPO of Hamid Fabrics.
SEC had sent letters to Dhaka and Chittagong stock exchanges and Bangladesh Merchant Bankers Association (BMBA) on Aug 19 that year to introduce the new IPO application system on a trial basis.
3 companies fined
The commission in its Tuesday meeting fined three companies Tk 800,000 each for violation of the Securities Act.
They are United Financial Trading Company, South Asian Securities Ltd and AA Rasayan Industries Ltd.
The capital market regulator is scrapping the provision of applications through banks for Initial Public Offering (IPO).
The Securities and Exchange Commission said in a media statement on Wednesday IPO applications now could only be placed through depository participants (DP) – brokerage houses and merchant banks – from Apr 1.
The SEC took this decision at its meeting on Tuesday.
The statement said IPO application only through depository participants would help reduce time for distribution of refund warrants.
Presently, IPO applications are usually submitted through banks.
However, applications can be placed through DP under a pilot project, which was launched on Oct 28 last year with the IPO of Hamid Fabrics.
SEC had sent letters to Dhaka and Chittagong stock exchanges and Bangladesh Merchant Bankers Association (BMBA) on Aug 19 that year to introduce the new IPO application system on a trial basis.
3 companies fined
The commission in its Tuesday meeting fined three companies Tk 800,000 each for violation of the Securities Act.
They are United Financial Trading Company, South Asian Securities Ltd and AA Rasayan Industries Ltd.
