Dhaka, Bangladesh (BBN)-Only 66 brokerage farms of Dhaka Stock Exchange (DSE) have completed preparations for the pilot project of launching the new IPO (initial public offering) process, officials said.
The premier bourse on Sunday submitted the list of the brokerage farms which are ready to take part in the pilot project of the proposed IPO process.
As per the DSE list, out of 250 brokerage firms 66 have completed preparations for the IPO process, whereas another 17 are in process and 25 sought time for completing preparation.
In the Chittagong Stock Exchange, (CSE) out of 148 members, 30 are ready for the pilot project.
The securities regulator earlier took the decision of easing the procedure of making applications for the IPOs through DPs (depository participants) instead of banks accounts following the demand of the bourses.
The preparation of brokerage firms for pilot project of new IPO process includes the job of software updates along with ensuring required manpower.
The Bangladesh Securities and Exchange Commission (BSEC) approved the new IPO process on May 20 last and asked both the bourses to submit the list of the members who will take part in pilot project by July 15 this year.
Later, the deadline for submitting the list of brokerage firms was extended up to July 20, 2015.
As per the proposed IPO process, the investors will apply for IPO shares through the brokerage firms by depositing money in the BO (beneficiary owner’s) accounts.
As a result, the IPO seekers do not need to stand in the long queue for depositing required amount of money through bank accounts.
The brokerage firms will have to make sure that the IPO applicants have required amount of money with their respective BO accounts before applying for the IPOs.
After holding the IPO lottery, the money of successful applicants will be transferred to the account of the issuer company and the unsuccessful investors also get back their money quickly.
BBN/BB/SS-21July14-12:00pm (BST)