Due to new rules of BSEC and less scopes for applying, the number of active BO (beneficiary owner’s) accounts declined 33.51 per cent or 0.67 million in nearly the last four months.
The number of active BO accounts was 2.66 million on May 31 last and the figure declined to 1.99 million on Tuesday.
As per the new rules, BO account holder has to keep investment worth Tk 20,000 in his account to be eligible for applying for IPO shares. On the other hand, the securities regulator has revised the IPO quota where it is an optional scope of issuing 15 per cent of the IPO shares under private offer.
In 2016, Bangladesh Securities and Exchange Commission (BSEC) reduced the renewal fee to Tk 450 from Tk 500 for each BO account. Of Tk 450, Tk 200 goes to the public exchequer, Tk 100 to DPs, Tk 100 to the CDBL and the remaining Tk 50 to the BSEC.
Excluding the portion of the private offer, the general public including NRBs and eligible investors (EIs) including mutual funds (MFs) would avail 75 per cent and 25 per cent IPO quota respectively under the fixed price method.
Of total BO accounts found active on Tuesday, residents maintain above 1.8 million accounts while the remaining 90,358 accounts are maintained by non-residents.
Source: The Financial Express