The current low price of Brac Bank shares in the stock market has prompted Bangladesh Rural Advancement Committee (Brac), a leading non-governmental development organisation, to decide on purchasing 2.5 crore of those before November 30.

According to the bank, its corporate sponsor already holds 58.70 crore shares, in other words, 44.27 per cent of its shares.

Yesterday, the stock traded at Tk 42.90. Considering the price, the 2.5 crore shares would be valued at Tk 107 crore.

The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved Brac'sapplication "exempting it from all legal bindings".

The decision came in a commission meeting on its premises chaired by BSEC Chairman Shibli Rubayat Ul Islam. A top Brac official, preferring anonymity, said they knew the real value of the bank and it was trading at the bourses' trading board at a price very low in context to its strength.

"It is a market support from our side as well." Brac thinks this is a good investment, he said, adding that this perspective prompted the purchase decision. "This is the only reason."

In the commission meeting, the premium of the initial public offering (IPO) of Mir Akhter Hossain was approved for raising a fund of Tk 125 crore.

The cut-off price of the share would be Tk 60 so general shareholders will pay Tk 54 for each share in the IPO.

The company will issue 2.07 crore shares to raise its desired fund, the BSEC said in a press release.

The commission also approved the digital booth (stock broker/TREC holder), 2020 rules.

According to the rules, stock brokers will be allowed to set up digital booths to attract investors from district and upazila levels.