Eligible investors asked to raise funds in stocks
The Bangladesh Securities and Exchange Commission (BSEC) has raised the investment requirement for eligible investors to qualify for the quota benefit during initial public offerings (IPOs).
The regulator took the decision yesterday at a commission meeting in a bid to increase the liquidity in the stock market through institutional investors. BSEC Chairman Prof Shibli Rubayat-Ul Islam presided over the meeting.
The decision came as the market suffered massive losses in the last few weeks.
The DSEX, the benchmark index of the Dhaka Stock Exchange, lost 556 points in eight trading days before recouping 118 points yesterday.
Each eligible investor, except for the pension fund, approved provident fund and gratuity fund, will have to increase their investment to Tk 3 crore from the existing Tk 1 crore on the cut-off date to avail the IPO quota benefit.
Each approved pension fund, provident fund or gratuity fund needs to raise its investment to Tk 1.50 crore from Tk 50 lakh.
Meanwhile, the BSEC ordered the electronics subscription system team of the stock exchanges to analyse the approval letter of the National Board of Revenue, the audited financial reports and bank statements of each pension fund, provident fund and gratuity fund.
These funds will not be allowed to invest in excess to the amount cited in their financial reports during IPOs, it added.
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