The securities regulators are tackling hindrances below the marking banks.
The Bangladesh Securities and Exchange Commission (BSEC) has gathered information from merchant banks and portfolio managers on their performance. It results that many of the institutions are not fulfilling their licensing conditions.
A merchant bank must submit documents for at least one initial public offering (IPO) to the BSEC every two years and have to create five new client portfolios. But some merchant banks cannot fulfil their licensing conditions regarding issue and portfolio management.
BSEC is willing to bring some merchant banks under an interrogation to find out the reasons behind their below benchmarks performance.
BSEC has requested Bangladesh Merchant Bankers Association (BMBA) to collect information from its members in a directed format and submit it to the regulator within the next five working days.
Sources said between 2010 and 2020, some merchant banks were less active in issue management. They are AB Investment, Abaci Investments, Agrani Equity and Investment, AIBL Capital Management, Bengal Investment, BLI Capital, City Bank Capital Resources, Cosmopolitan Finance, Exim Islami Investment, Green Delta Capital, GSP Investment, Hal Capital, IIDFC Capital, Islami Bank Capital Management, Jamuna Bank Capital Management, Meghna Capital Management, Race Portfolio & Issue Management, Riverstone Capital, Roots Investment, Strategic Finance, and Uttara Finance Capital Management Limited.
On the other hand, City Bank Capital Resources have been performing better than others in the bond market. Other well performing managers are- ICB Capital Management, AFC Capital Limited, Imperial Capital, LankaBangla Investments, Prime Bank Investments, Banco Finance & Investment, IDLC Investments, AAA Finance & Investment Ltd are mostly active in bringing new issues to the market.
Source: The Business Standard