No significant rise in last six months

The number of active beneficiary owner's (BO) accounts witnessed no significant rise in last six months due to 'reduced' opportunity for general IPO seekers after enhancement of quota for institutions and others, brokers said.  
Some stakeholders, however, termed the static position of BO accounts as 'positive' for the capital market.
According to information of Central Depository Bangladesh Limited (CDBL), the number of active BO accounts was 3,153,442 as of July 1, 2016.
Later, on September 8, 2016 the number reduced to 2,912,380 after closing of 241,062 accounts.
On Wednesday (yesterday), the number of active BO accounts stood at 2,931,862.
Some 19,482 accounts were opened in last three months but the current figure of active BO accounts is yet to touch or cross the number of 3,153,442 observed on July 1 last.
The officials of some stock brokers said the number of BO accounts mainly rises following the opportunity of general investors to hit the jackpot in IPOs (initial public offering).
"A general IPO seeker previously maintained many accounts to apply for IPO shares. After the enhancement of institutional quota, the opportunity of general IPO seekers has reduced," said a senior official who deals with investors' BO accounts at a brokerage firms.
He said the reduced opportunity for general IPO seekers is a reason of witnessing no significant in active BO accounts.
Md. Shakil Rizvi, a DSE director, said the static BO accounts position indicates that general investors now are not investing whimsically by opening BO accounts.
"During the period of stable market trend the static position of BO accounts is a positive indication for the capital market," said Rizvi, also a former president of the premier bourse.
He said previously it was observed that the number of BO accounts rose abnormally following wild rally of capital market.
He also said the number of BO accounts may rise if the market shows abnormal upward trend.
"Market's stability is important than the abnormal rise," Rizvi added.
As per revised public issue rules, eligible institutional investors (EIIs) will be able to apply for 40 per cent shares of a company willing to go public under fixed price method.
The regulator has preserved 10 per cent quota for mutual funds (MFs), 10 per cent for non-resident Bangladeshis (NRBs) and remaining 40 per cent for general investors in the IPO approved under fixed price method.
Before the latest amendment of public issue rules, there was no quota for institutional investors in the IPOs approved under fixed price method.
Under the book building method, the EIIs will apply for 50 per cent shares, MFs for 10 per cent shares, 10 per cent for NRBs and remaining 30 per cent for general investors.
The Dhaka bourse recently witnessed a satisfactory turnover along with the rise in key index.
In most of trading sessions of last two months, the market turnover has crossed Tk 8.0 billion-mark and in some sessions the value was above Tk 10 billion.
On the other hand, the DSE benchmark index DSEX has crossed 4900-point mark.
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