SEC cancels more than 0.1m BO accounts
Tuesday, 6 November 2007
FE Report
The Securities and Exchange Commission has cancelled more than 100,000 Beneficiary Owner (BO) accounts, primarily for the failure to pay the annual 'maintenance' fee within September 30 last by the account holders concerned, according to sources.
Some BO accounts were, however, were cancelled for other reasons, including inadequate information.
The SEC, earlier, made it mandatory for the BO account holders to pay an annual 'maintenance' fee of Tk 300 each. This year, the last date for payment of the fee was fixed on September 30.
Meanwhile, the SEC has decided to make the opening of BO accounts a bit difficult to avoid fake accounts.
The SEC at a meeting recently decided that people interested in opening BO accounts would have to submit certificates from their respective banks.
Sources said a bank certificate would contain names of the person interested to open a BO account, his/her father's and mother's names and account number.
They said the signature put on the BO account forms by the applicants must not be similar to that of bank accounts.
The signatures put on backside of the photographs might be different from bank accounts and BO accounts, but it must be done in front of the bank officials as a proof, SEC official said.
'Existing BO accounts holders also have to fulfil the obligations within six months after issuance of the order,' he said.
Earlier in August, the SEC tightened the rules for opening and maintaining BO accounts, allowing the commission to forfeit the application money of initial public offerings for using fake BO accounts.
'If an applicant submits more than two applications, the whole or a part of application money may be forfeited by the commission, the new rules said adding 'in such cases, all applications will be treated as invalid and will not be considered for allotment.'
Under the new rules, an applicant/joint-applicants has/have to furnish, among others, his/her mother's or their mothers' names in the application form.
As per the rules, an applicant cannot submit more than two applications for IPOs, one in his/her own name and another jointly with any other individual.
Currently, the number of BO accounts, through which investors take part in trading, is more than 1.4 million but most of the accounts are used only to participate in the IPOs, said sources.
The Securities and Exchange Commission has cancelled more than 100,000 Beneficiary Owner (BO) accounts, primarily for the failure to pay the annual 'maintenance' fee within September 30 last by the account holders concerned, according to sources.
Some BO accounts were, however, were cancelled for other reasons, including inadequate information.
The SEC, earlier, made it mandatory for the BO account holders to pay an annual 'maintenance' fee of Tk 300 each. This year, the last date for payment of the fee was fixed on September 30.
Meanwhile, the SEC has decided to make the opening of BO accounts a bit difficult to avoid fake accounts.
The SEC at a meeting recently decided that people interested in opening BO accounts would have to submit certificates from their respective banks.
Sources said a bank certificate would contain names of the person interested to open a BO account, his/her father's and mother's names and account number.
They said the signature put on the BO account forms by the applicants must not be similar to that of bank accounts.
The signatures put on backside of the photographs might be different from bank accounts and BO accounts, but it must be done in front of the bank officials as a proof, SEC official said.
'Existing BO accounts holders also have to fulfil the obligations within six months after issuance of the order,' he said.
Earlier in August, the SEC tightened the rules for opening and maintaining BO accounts, allowing the commission to forfeit the application money of initial public offerings for using fake BO accounts.
'If an applicant submits more than two applications, the whole or a part of application money may be forfeited by the commission, the new rules said adding 'in such cases, all applications will be treated as invalid and will not be considered for allotment.'
Under the new rules, an applicant/joint-applicants has/have to furnish, among others, his/her mother's or their mothers' names in the application form.
As per the rules, an applicant cannot submit more than two applications for IPOs, one in his/her own name and another jointly with any other individual.
Currently, the number of BO accounts, through which investors take part in trading, is more than 1.4 million but most of the accounts are used only to participate in the IPOs, said sources.