HSBC launches new service for NRB investors in stock market
FE Report | Wednesday, 6 August 2008
The Hong Kong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh Tuesday launched a new custodian service, first of its kind allowing the non-resident Bangladeshis (NRBs) to invest in the capital market.
Under this service called 'Smart Capital', the HSBC will provide services ranging from opening beneficiary owner's (BO) accounts to transaction of shares awarded to the NRBs through initial public offering (IPO) by the designated broker of customer's choice.
To facilitate the sales transaction, HSBC has signed a Memorandum of Understanding (MoU) with Equity Partners and Securities Limited, a leading brokerage house.
Managing director of Equity Partners and Securities Limited Saiful Islam and the chief executive officer of HSBC Bangladesh Sanjay Prakash signed the MoU agreement at a press conference held at a city hotel.
Sanjay Prakash said, "Bangladesh International- Smart Capital would be a service proposition of HSBC that will allow the NRBs customers to bring in the inward remittances through Non Resident Taka Account (NITA) and invest in IPO through HSBC, which will provide custodian services to the NRBs."
NITA is an account that can be opened by any NRBs in any bank as per the guideline of central bank of Bangladesh to invest in the capital market.
The NRB investors' presence in the Bangladesh stock market grew in recent years in the backdrop of the rally of share prices since early 2007.
As a result, the number of NRB BO account-holders rose to 40,000 in early 2008 from a mere 10,000 of 2006.
Sanjay said, presently the HSBC is providing custodian services to 6000 NRBs with its presence in 83 countries.
He added that it was a unique position to offer international connectivity to NRBs to help them maintain a link with their family as well as support the Bangladesh economy as growing remittance is playing a pivotal role.
HSBC Head of Personal Financial Services Shafquat Hossain, Customer Propositions Manager Zubayer Ershad and Division Head Institutional Banking and Securities Services Shohiduzzaman were present at the press conference.
Under this service called 'Smart Capital', the HSBC will provide services ranging from opening beneficiary owner's (BO) accounts to transaction of shares awarded to the NRBs through initial public offering (IPO) by the designated broker of customer's choice.
To facilitate the sales transaction, HSBC has signed a Memorandum of Understanding (MoU) with Equity Partners and Securities Limited, a leading brokerage house.
Managing director of Equity Partners and Securities Limited Saiful Islam and the chief executive officer of HSBC Bangladesh Sanjay Prakash signed the MoU agreement at a press conference held at a city hotel.
Sanjay Prakash said, "Bangladesh International- Smart Capital would be a service proposition of HSBC that will allow the NRBs customers to bring in the inward remittances through Non Resident Taka Account (NITA) and invest in IPO through HSBC, which will provide custodian services to the NRBs."
NITA is an account that can be opened by any NRBs in any bank as per the guideline of central bank of Bangladesh to invest in the capital market.
The NRB investors' presence in the Bangladesh stock market grew in recent years in the backdrop of the rally of share prices since early 2007.
As a result, the number of NRB BO account-holders rose to 40,000 in early 2008 from a mere 10,000 of 2006.
Sanjay said, presently the HSBC is providing custodian services to 6000 NRBs with its presence in 83 countries.
He added that it was a unique position to offer international connectivity to NRBs to help them maintain a link with their family as well as support the Bangladesh economy as growing remittance is playing a pivotal role.
HSBC Head of Personal Financial Services Shafquat Hossain, Customer Propositions Manager Zubayer Ershad and Division Head Institutional Banking and Securities Services Shohiduzzaman were present at the press conference.