Trust Bank may do merchant banking also
Wednesday, 28 November 2007
FE Report
The Securities and Exchange Commission (SEC) Tuesday allowed the Trust Bank to operate merchant banking activities and revised some rules relating to custodial services and portfolio management of merchant banks.
The stock market regulatory watchdog at its regular meeting also forfeited an unclaimed of refund warrants worth of Tk 840,000 of 168 applicants, who had sought to buy the initial-public offerings (IPOs) of the Progressive Life Insurance Company.
Executive director of the SEC Farhad Ahmed said the SEC revised the custodial services rules 2003 and portfolio management 1996 to bring more transparency in securities' transaction.
He said the Trust Bank applied for operation of merchant banking activities in 2003 and the regulatory watchdog approved its application today (Tuesday).
With the new permission, the number of merchant banks in the country now stands at 30, he said.
In another development, the SEC decided to separate the individual accounts from the joint omnibus accounts of a merchant bank in two cycles of settlements.
Farhad Ahmed said in an omnibus account only the signatory enjoys different benefits given by the companies, as the other individuals remain anonymous.
"This means, an omnibus account, a combined account of a group of investors with a merchant bank, should be separated within eight days of trading to bring transparency in transaction," Farhad Ahmed said.
He said in portfolio investment the new rules should also be followed strictly.
Farhad Ahmed said the SEC distributed the forfeited money, received from the Progressive Life Insurance Company IPOs, equally between the investors' protection funds of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
He said the SEC published advertisements in the national dailies for several times to draw the attention of the individuals who applied for the IPOs of the Progressive Life Insurance Company.
When nobody came to receive the refund warrants, the SEC decided to forfeit the amount, he said.
The Securities and Exchange Commission (SEC) Tuesday allowed the Trust Bank to operate merchant banking activities and revised some rules relating to custodial services and portfolio management of merchant banks.
The stock market regulatory watchdog at its regular meeting also forfeited an unclaimed of refund warrants worth of Tk 840,000 of 168 applicants, who had sought to buy the initial-public offerings (IPOs) of the Progressive Life Insurance Company.
Executive director of the SEC Farhad Ahmed said the SEC revised the custodial services rules 2003 and portfolio management 1996 to bring more transparency in securities' transaction.
He said the Trust Bank applied for operation of merchant banking activities in 2003 and the regulatory watchdog approved its application today (Tuesday).
With the new permission, the number of merchant banks in the country now stands at 30, he said.
In another development, the SEC decided to separate the individual accounts from the joint omnibus accounts of a merchant bank in two cycles of settlements.
Farhad Ahmed said in an omnibus account only the signatory enjoys different benefits given by the companies, as the other individuals remain anonymous.
"This means, an omnibus account, a combined account of a group of investors with a merchant bank, should be separated within eight days of trading to bring transparency in transaction," Farhad Ahmed said.
He said in portfolio investment the new rules should also be followed strictly.
Farhad Ahmed said the SEC distributed the forfeited money, received from the Progressive Life Insurance Company IPOs, equally between the investors' protection funds of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
He said the SEC published advertisements in the national dailies for several times to draw the attention of the individuals who applied for the IPOs of the Progressive Life Insurance Company.
When nobody came to receive the refund warrants, the SEC decided to forfeit the amount, he said.