SEC allows investors' choice in getting IPO refund warrants
Wednesday, 20 January 2010
FE Report
Unsuccessful IPO applicants, from now on have to mention in their application forms in which way (manual or online), they intend to have the refund money. But incase of online banking the applicants must bear the bank fees to have the refund money.
The Securities and Exchange Commission (SEC) Tuesday took the decision.
The move came after investors recently faced a lot of trouble in getting refund warrant of Golden Son Limited.
The SEC said the cash dividend of the listed companies would also be distributed through the aforesaid ways from right now.
Earlier, the SEC said in a directive that the refund money would be distributed through online banking to respective bank accounts.
"As all the banks have no online banking system, the SEC took the decision to reduce the sufferings of the unsuccessful applicants," SEC member Mansur Alam told the FE.
"When all banks will come under online banking system then the refund money will be credited through online banking and we have already sent letter to the Bangladesh Bank to quicken the system" he added.
Recently, during the distribution of refund warrants of the Golden Son Limited, a few private banks charged extra fees on the company without any specific guideline of the central bank. The state-owned banks also said they would charge fees on the company for same purpose.
Unsuccessful IPO applicants, from now on have to mention in their application forms in which way (manual or online), they intend to have the refund money. But incase of online banking the applicants must bear the bank fees to have the refund money.
The Securities and Exchange Commission (SEC) Tuesday took the decision.
The move came after investors recently faced a lot of trouble in getting refund warrant of Golden Son Limited.
The SEC said the cash dividend of the listed companies would also be distributed through the aforesaid ways from right now.
Earlier, the SEC said in a directive that the refund money would be distributed through online banking to respective bank accounts.
"As all the banks have no online banking system, the SEC took the decision to reduce the sufferings of the unsuccessful applicants," SEC member Mansur Alam told the FE.
"When all banks will come under online banking system then the refund money will be credited through online banking and we have already sent letter to the Bangladesh Bank to quicken the system" he added.
Recently, during the distribution of refund warrants of the Golden Son Limited, a few private banks charged extra fees on the company without any specific guideline of the central bank. The state-owned banks also said they would charge fees on the company for same purpose.