Second NRB Mutual Fund IPO gets SEC nod
Wednesday, 12 March 2008
FE Report
The Securities and Exchange Commission (SEC) approved Tuesday a Tk 1-billion 'ICB AMCL Second NRB Mutual Fund', the largest initial public offering (IPO) in the country's stock market.
Of the total amount, 60 per cent shares have been kept for non-resident of Bangladeshis (NRBs), 20 per cent for resident Bangladeshis, 10 per cent for mutual funds and 10 per cent for sponsors.
The approval came at a meeting of the Commission.
The ICB AMCL Second NRB Mutual Fund will be a close-end fund. Earlier, Grameen One was the largest mutual fund worth Tk 170 million and Shahjalal Bank's was the largest IPO worth Tk 920 million.
The SEC also decided to forfeit the primary shares of the upcoming listed companies if the beneficiary owners (BO) accounts of the IPO winners remained inactive after the allotment of primary shares.
The meeting also extended the timeframe for submitting certificates from the banks in opening BO accounts till June 30 next for making enough time for the interested BO account openers.
It also relaxed rules relating to opening of BO accounts. From now on there will be no need to verify the signature put on the BO account forms and the certificates from banks concerned.
"The commission decided to extend the time as the circular regarding BO accounts issued earlier by the central bank were received late, making it inconvenient for the people to open BO accounts," said Farhad Ahmed, executive director of the SEC.
Earlier in October last, the SEC issued an order for the existing BO account holders and new ones to take certificates from bank for opening BO accounts.
Currently the number of BO accounts is over 1.5 million, said sources.
The Securities and Exchange Commission (SEC) approved Tuesday a Tk 1-billion 'ICB AMCL Second NRB Mutual Fund', the largest initial public offering (IPO) in the country's stock market.
Of the total amount, 60 per cent shares have been kept for non-resident of Bangladeshis (NRBs), 20 per cent for resident Bangladeshis, 10 per cent for mutual funds and 10 per cent for sponsors.
The approval came at a meeting of the Commission.
The ICB AMCL Second NRB Mutual Fund will be a close-end fund. Earlier, Grameen One was the largest mutual fund worth Tk 170 million and Shahjalal Bank's was the largest IPO worth Tk 920 million.
The SEC also decided to forfeit the primary shares of the upcoming listed companies if the beneficiary owners (BO) accounts of the IPO winners remained inactive after the allotment of primary shares.
The meeting also extended the timeframe for submitting certificates from the banks in opening BO accounts till June 30 next for making enough time for the interested BO account openers.
It also relaxed rules relating to opening of BO accounts. From now on there will be no need to verify the signature put on the BO account forms and the certificates from banks concerned.
"The commission decided to extend the time as the circular regarding BO accounts issued earlier by the central bank were received late, making it inconvenient for the people to open BO accounts," said Farhad Ahmed, executive director of the SEC.
Earlier in October last, the SEC issued an order for the existing BO account holders and new ones to take certificates from bank for opening BO accounts.
Currently the number of BO accounts is over 1.5 million, said sources.