Dhaka, Bangladesh (BBN)-Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the draft rules to facilitate small-cap companies, which will offload shares through Qualified Investor Offer (QIO), officials said.
The approval came a meeting held at the office of the Bangladesh securities regulator chaired by its chairman Prof M Khairul Hossain.
Under the rules titled ‘The Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Capital Companies), the small cap companies will be listed with the separate platforms to be introduced in both the stock exchanges.
The companies will be listed under both the fixed price and book building method and the share trading by the Qualified Investors (QIs) will be conducted as like the trading system of the main platform.
As per the BSEC rules, the existing paid-up of the companies willing to raise funds through separate platforms will be minimum BDT 50 million and the amount will exist below BDT 300 million after offloading shares.
The securities regulator has also approved the prospectuses, which incorporated some amendments, of three unit funds which earlier were managed by the Investment Corporation of Bangladesh (ICB).
The unit funds are 3rd ICB Unit Fund, 4th ICB Unit Fund and 5th ICB Unit fund.
These three mutual funds (MFs) have already been converted into growth funds from previous closed-end ones.
The targeted size of 3rd ICB Unit Fund is BDT 440 million, 4th ICB Unit Fund BDT 315 million and 5th ICB Unit Fund BDT 460 million.
These MFs from now on will be managed by ICB Asset Management Company instead of previous fund manager ICB.
The securities regulator has also issued a directive on distribution of unit holders’ money after liquidation of mutual funds (MFs).
The regulator issued the directive with the power of the section of 20A of the Securities and Exchange Ordinance, 1969.
Under the BSEC directive, after completion of liquidation of the MF the trustees will distribute unit holders’ money through electronic fund transfer network (EFTN).
In case of distributing the money of unit holders having margin loans, the money will be distributed through the depository participants (DPs).
After distributing the clients’ money, the margin loan providers will submit a report describing the details of clients to the trustee.
The money of the unit holders, who are unable to receive money through EFTN, will be paid through crossed cheque or bank draft or pay order.
As per the BSEC conversion guideline, the liquidation of two MFs named AIMS First Guaranteed Mutual Fund and the First Scheme of the Grameen Mutual Fund has almost been completed.
At Wednesday’s meeting, the securities regulator has exempted the listed companies, other than the banks, insurance companies and financial institutions (FIs), from some compliance of the some securities rules till June 30, 2016.
The regulator exemption came following the complexities faced by many companies in complying with the uniform ‘income year’ as ‘per the circular of the revenue board.
According to the circular-2015 (Income Tax) issued by the National Board of Revenue (NBR), the year-end of companies, other than banks, insurance companies and financial institutions (FIs), will be June 30.
The companies, other than banks, insurance companies and FIs, will have to income year considering June 30 as year-end.
The BSEC officials said a directive on exemption of rules mentioned in the securities regulator will be issued soon.