SEC withholds four cos' refund warrant distribution

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FE Report
The distribution of refund warrants worth Tk 5.0 million of four companies has been withheld by an order issued by Securities Exchange Commission (SEC) due to duplication and other mistakes made in the applications, sources said.
"Ten per cent money from the refund warrants will be forfeited and the remaining 90 per cent will be distributed among the unsuccessful applicants, who applied for Initial Public Offering (IPO) of four companies," an SEC official said.
The unsuccessful appli-cants who have not yet received refund warrants for the Initial Public Offering (IPO) are of Marico Bangladesh Limited, Islamic Insurance Company Limited, Dacca Dying and Manufacturing Limited and Grameenphone Limited.
In Marico Bangladesh more than Tk. 8.0 million of 110 applicants, in Islamic Insurance Limited more than Tk. 11.5 million of 2306 applicants, in Dacca Dying more than Tk. 9.9 million of 1997 applicants and in Grameenphone Limited more than Tk. 16 million of 1068 applicants have been held up by an order of the SEC.
"To prevent duplicate application and to make easier the process of refund warrant distribution, the banks can identify the applicants by matching their personal ID cards when one intends to submit more than one IPO forms," former SEC chairman as well as former finance adviser AB Mirza Azizul Islam told the FE.
"The forfeited money will be deposited in a government fund. The penalty is being imposed due to faults, such as duplicate application, lack of awareness and many other mistakes made by the applicants," he added.
On the other hand, most of the unsuccessful applicants, who applied for IPO of Golden Son Limited, have not yet got the refund warrants. The applicants staged demonstration in front of DSE and SEC on several occasions for getting refund warrants. The company and its issue manager said due to mistakes done by the applicants, the distribution has not been yet completed.