BO account maintenance fee goes up
The stockmarket regulator has imposed an additional Tk 200 in annual maintenance fee on each beneficiary owner (BO) account.
The decision effective from July takes the total annual maintenance fee to Tk 500.
The Securities and Exchange Commission (SEC) took the decision at a meeting yesterday in a bid to increase government revenue from stockmarket. SEC Chairman Ziaul Haque Khondker presided over the meeting.
The maintenance fee will go to the state coffers, and the government will receive around Tk 50 crore a year from around 25 lakh BO accounts now active in capital market.
The SEC first introduced a Tk 300 annual maintenance fee in 2007 to stop the opening of fake or shady BO accounts by using other person's information.
According to rules, of the annual fee of Tk 300, a depository participant gets Tk 100, the CDBL (Central Depository of Bangladesh Limited) Tk 150 and the SEC Tk 50.
Previously, the BO account holders had to pay a custody fee annually to the CDBL, if there were shares in the accounts. The custody fee was calculated on the basis of existing shares in a BO account and an account holder had to pay 0.05 percent of the current market value of the shares.
But it was seen in many occasions that a group of investors participate in the IPOs with many BO accounts, which ultimately cuts the real investors' competitiveness.
A prospective investor pays up to Tk 1,000 to open a BO account.
ACTIVE FINE CHEMICALS IPO APPROVED
At yesterday's meeting, the SEC also gave a go-ahead to Active Fine Chemicals Ltd, a chemical reagent and active pharmaceutical ingredients (API) maker, to raise Tk 16 crore from stockmarket.
Active Fine Chemicals will float 1.6 crore ordinary shares of Tk 10 each to raise the funds, which the company said will strengthen its foothold in a sector that is now heavily dependent on imports.
It will also use a portion of the money to pay off bank loans that it took against its project established in 2004 on 10 acres of land in Munshiganj. The company will pay off Tk 6.55 crore bank loans, while the rest of the amount will be added to the working capital structure for business expansion and for IPO (initial public offering) expenditure.
The company's existing paid-up capital is Tk 24 crore, of which Tk 4 crore was raised through private placement.
As of December 2009, the company's earnings per share (EPS) were Tk 0.51 on net turnover of Tk 2.25 crore. The EPS has been projected to reach Tk 2.30 by the year-end.
As of December 2009, the company's net asset value (NAV) per share was Tk 11.57.
Janata Bank is the issue manager of Active Fine Chemicals IPO.
At present, 20 pharmaceuticals and chemicals companies are listed on the stockmarket.
GREEN DELTA MUTUAL FUND GETS NOD
The stockmarket regulator also approved a Tk 150 crore closed-end mutual fund, sponsored by Green Delta Insurance.
The sponsors will subscribe Tk 15 crore of the 10-yearly fund styled “Green Delta Mutual Fund”. Of the rest amount, Tk 60 crore has been kept for pre-IPO or private placement, while Tk 75 crore will be raised from public through IPO.
Face value of each unit of the fund is Tk 10. LR Global Bangladesh, an asset management company, is the manager of the fund.