DSE asked to submit observations promptly

The securities regulator has asked Dhaka Stock Exchange (DSE) to submit their observations regarding the IPO (initial public offering) proposals promptly so that the regulator can evaluate observations while giving consent to IPO proposals, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) said this last week at a meeting held with the Regulatory Affairs Committee (RAC) of the premier bourse.
"The securities regulator showed very positive attitude to evaluate the DSE's observations which will be submitted prior to IPO proposals," said an official source who attended the meeting.
He said, in this connection the BSEC has told the premier bourse to submit their observations earlier so that the regulator gets scope to take into account the observations.
At the meeting, the BSEC has also stressed the necessity of specifying the areas of the IPO proposals which contradicts with the DSE's listing regulations.
"It will be convenient for BSEC if premier bourse identify the points of the IPO prospectus which create conflicts to the listing regulations," the source said.
According to the meeting source, the regulator wants to dissolve any discord regarding the IPO proposal through a joint responsibility.
While stressing on the responsibility of relevant parties, the BSEC policy makers also spoke about their limitations in giving consent to an IPO proposal.
"The BSEC cannot fix the offer price. At the same time, a disclosure regarding the responsibilities of Issuer Company, issue manager and auditors is given in the IPO prospectus," the BSEC policy makers told the meeting.   
The DSE officials, however, could not be reached despite repeated efforts to make comments on the regulatory move to evaluate the premier bourse's observations.  
The latest development on evaluating the observations regarding IPO proposals came from the regulatory end after a prolonged tussle.
The premier bourse formed a 14-member expert panel on April 25, 2012 to examine the draft prospectuses of the companies which submitted IPO proposals to go public.
The panel's job was look into the companies' balance sheet, accounts, earnings per share, net asset value, business performance and growth, credit rating, valuation, risk factors and the IPO offer price in the prospectus.
Later, the DSE dissolved the panel, as its observations were 'not evaluated' by the securities regulator while giving consent to the IPO proposals.
Recently, the members and board of directors of the premier bourse have decided to raise their concern to the securities regulator by identifying the 'fabricated' financial disclosures and various 'loopholes' of the companies which submitted IPO proposals.