bdnews24.com :
Capital market regulator Securities and Exchange Commission (SEC) has approved a policy to ease IPO procedures by obviating the role of banks in the exercise.
The new procedure would allow stock brokers, merchant banks and Bangladesh Bank (NRB and foreign applicants) – designated ‘depository participants’ (DPs) – to accept share applications.
The new system 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 on Tuesday.
At present, companies entrust 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The money cannot be withdrawn, transferred or used for buying shares till the IPO lottery is held.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.
