12:00 AM, July 21, 2014 / LAST MODIFIED: 01:53 AM, March 08, 2015

Brokers not ready for new IPO method

Brokers not ready for new IPO method

Star Business Report

More than half of the stockbrokers are still not prepared to use a new IPO subscription method, which is aimed at making the procedure easy and less time-consuming.
Of the 250 stockbrokers of Dhaka Stock Exchange, only 66 are ready to use the new system, while 17 are in the process and 25 sought additional time for taking preparations.
The situation of the rest 142 is yet to be known, as they did not respond to the premier bourse's queries about their preparedness.
Under the new system, IPO (initial public offering) subscription will be done through stockbrokers. Presently, the IPO process, including listing, takes more than five weeks to complete, whereas it takes only two days in India.
The DSE yesterday sent a report to Bangladesh Securities and Exchange Commission on the preparedness of the stockbrokers.
After knowing the latest situation of the stockbrokers, the regulator may implement the new method on a pilot basis soon.
The regulator approved the new method of IPO subscription in May and asked stockbrokers, merchant banks and banks to take preparations to implement the new system.


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