SEC agrees with proposal of stakeholders on book building
Tuesday, 29 March 2011
FE Report
The securities regulator has agreed with the proposal of stakeholders to postpone the proposed amendment to the book building method until the probe committee submits its report, officials said. The proposal came at a meeting held Monday at the office of the Securities and Exchange Commission (SEC) in the capital. At the meeting, the participants from the two stock exchanges, Bangladesh Association of Publicly Listed Companies (BAPLC) and Bangladesh Merchant Bankers' Association (BMBA) said the regulator should refrain from bringing amendment to book building method until the submission of the probe body's report. After the meeting, Ahasanul Islam, senior vice president of DSE, said the probe body's terms of reference include the possible misuse of the book building method. "That's why we should evaluate the probe body's findings before bringing amendment to the book building method," Mr. Islam said. An SEC official said, the regulator has endorsed the opinion of four key stakeholders regarding the proposed amendment to the method. However, according to sources, the probe committee on the recent stock market crash is likely to submit its report on March 31, if the finance minister does not go abroad on March 30. If he leaves the country on the scheduled day, the probe committee may submit its report by April 5, 2011. Recently, the SEC sought stakeholders' opinion on bringing amendment to the book building method, in which the maximum allowable PE ratio will be 15 for a company to go public.
The securities regulator has agreed with the proposal of stakeholders to postpone the proposed amendment to the book building method until the probe committee submits its report, officials said. The proposal came at a meeting held Monday at the office of the Securities and Exchange Commission (SEC) in the capital. At the meeting, the participants from the two stock exchanges, Bangladesh Association of Publicly Listed Companies (BAPLC) and Bangladesh Merchant Bankers' Association (BMBA) said the regulator should refrain from bringing amendment to book building method until the submission of the probe body's report. After the meeting, Ahasanul Islam, senior vice president of DSE, said the probe body's terms of reference include the possible misuse of the book building method. "That's why we should evaluate the probe body's findings before bringing amendment to the book building method," Mr. Islam said. An SEC official said, the regulator has endorsed the opinion of four key stakeholders regarding the proposed amendment to the method. However, according to sources, the probe committee on the recent stock market crash is likely to submit its report on March 31, if the finance minister does not go abroad on March 30. If he leaves the country on the scheduled day, the probe committee may submit its report by April 5, 2011. Recently, the SEC sought stakeholders' opinion on bringing amendment to the book building method, in which the maximum allowable PE ratio will be 15 for a company to go public.