Bangladesh National Ins IPO approved

The securities regulator has approved the IPO (initial public offering) proposal of Bangladesh National Insurance Company (BNIC) which will raise a fund worth Tk 177 million under fixed price method, officials said.
The approval came Tuesday at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per the BSEC approval, the BNIC will offload 17.7 million ordinary shares at an offer price of ten taka each. The company will invest in FDR, Treasury Bond with the IPO fund along with bearing expenses of IPO process.  
In accordance with the half yearly financial statement prepared as of July 31, 2014, the BNIC's earning per share (EPS) and net asset value (NAV) per share are Tk 1.07 and Tk 15.65 respectively.
Prime Finance Capital Finance Capital has been appointed the issue manager of the BNIC.
As per another regulatory decision, from now on the money of bonus dividends of the investors having margin accounts will have to be provided to the stock brokers instead of depositing into clients' beneficiary owner's (BO) accounts.
After getting the cheque and dividend warrants from the issuer companies, the depository participants (DPs) will disburse the fund into the clients' accounts.
The clients having margin loans will also not be able to transfer rights shares without the consent of stock brokers.
To execute the regulatory directive the stock brokers will provide the list of their clients having margin accounts to the issuer companies.
The securities regulator has brought changes in the provision of distributing dividends following a cent proposal made by the stock brokers of the premier bourse.
As per existing system, the money bonus of dividends is deposited into investors' bank accounts directly.
The margin lenders sought the opportunity of receiving the clients' bonus dividends through their own portfolios as sometimes they are unable to recover the margin loans provided to their clients.
According to a recent regulatory decision, merchant banks have already got the opportunity of receiving the bonus dividends of their clients, who are not repaying margin loans.
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