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BO account opening to be digitised

Mohammad Mufazzal | December 06, 2020 00:00:00

Investors willing to invest in the capital market will be able to open BO (beneficiary owner's) accounts online in near future without going to the firms.

As part of the regulatory move to digitise the country's capital market, the Central Depository Bangladesh Limited (CDBL) has started the job of developing a module through which investors will be able to open BO accounts online.

On completion of the process, investors having internet connection will be allowed to open BO accounts using android mobile phones, laptops and desktop computers.

To accelerate the process of opening BO accounts digitally, the Bangladesh Securities and Exchange Commission (BSEC) held a meeting at its office on Thursday.

The representatives of both the stock exchanges and the CDBL attended the meeting.

Mohammad Rezaul Karim, a BSEC spokesperson, said investors willing to invest in the capital market will be allowed to open BO accounts transferring the charge through credit card or EFT (electronic funds transfer) system.

"The module will have the option of opening BO accounts using one photograph, NID or passport number, one photo copy of bank's cheque book," Mr. Karim told the FE.

He said the easy way of opening BO accounts digitally will reduce investors' hassles significantly.

Asked, the CDBL's managing director Shuvra Kanti Choudhury said investors will open the BO accounts under the brokerage firms as preferred by them while opening accounts.

"The module will have the option of choosing a brokerage firm. An investor's BO account opened using our module will be active after accepting his information by a brokerage firm on receipt of stipulated charge," Mr. Choudhury said.

He said the job of developing the CDBL's module will be completed within a shortest possible timeframe.

On completion of the job of developing, the CDBL's module will be available on the websites of the stock exchanges and other institutions of the capital market.

An official of a brokerage firm of the Dhaka Stock Exchange (DSE) said Tk 400 to Tk 500 is charged for opening a BO account.

"In some cases, Tk 1000 to Tk 2000 is charged for opening a BO account," the official said.

In 2016, the securities regulator reduced the renewal fee to Tk 450 from Tk 500 for each BO account with the aim of reducing financial burden on investors.

Of Tk 450, Tk 200 goes to the public exchequer, Tk 100 to depository participants (DPs), Tk 100 to the CDBL and the remaining Tk 50 to the BSEC.

The securities regulator recently has approved the rules for opening digital trading outlets in different areas of the country and abroad.

The regulator enacted the rules to enhance the depth of the country's capital market ensuring the people mass scale participation from home and abroad.

According to BSEC official, a brokerage firm has showed interest to open trading outlet abroad.

The number of active BO accounts stood at above 2.61 million as of Thursday, according to information of the CDBL.

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