BSEC clarifies position

The securities regulator has clarified its position regarding the rules and procedures for approval of IPO (initial public offering) process.
The Bangladesh Securities and Exchange Commission (BSEC) Monday made the clarification available on its official website.
The official sources said the regulatory move came following the criticisms over allowing some companies being over-priced.
Meanwhile, the ministry of finance (MoF) has asked the BSEC for ensuring 'strict' implementation of relevant rules and regulations while determining the prices of primary shares for the greater interest of general investors.
The MoF also posted the letter on the website.
Experts criticised the letter of MoF saying that the ministry should solve any problem through internal discussion without sending such kind of letter hurting the 'image of a regulator'.
In its clarification, the securities regulator said the responsibility of the commission is to ensure the reflection of the company's overall scenario in offer documents.
"The commission ensures the company's reflection in offer documents by issuing deficiency letters until all requirements are fulfilled. The commission rejects an IPO proposal if the deficiencies are not fulfilled by the issuer company and issuer manager," the BSEC clarification reads.
The BSEC said that they rejected 18 IPO proposals and 16 rights offers during the year 2013 to 2014 for submitting misleading or fake information in offer documents along with taking some punitive measures against those.
"Besides, the regulator takes measures so that the listed companies follow corporate governance guideline."
The BSEC has mentioned the responsibilities of issuer company and issue manager while proceeding the documents required for IPO proposals to the commission.
Different sections of rules and ordinance, which are followed by the commission, have also been mentioned in the clarification made by the securities regulator.
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