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Post-listing non-performance

BSEC asks some merchant banks to explain

FE REPORT | September 13, 2022 00:00:00

The securities regulator has asked several merchant banks to explain why their issue management activities will not be suspended over their involvement in the listing of non-performing companies.

The Bangladesh Securities and Exchange Commission (BSEC) on Monday asked the companies to submit explanations within seven working days.

Asked, the BSEC officials, however, refused to mention the names and the exact number of companies from which explanations have been called.

In the letter sent to a merchant bank, the securities regulator said that after listing the companies were not performing properly.

"… despite you provided a due diligence certificate in the prospectus regarding conformity with the documents, materials and papers relevant to the issue," said the securities regulator.

It said the merchant banks declared that all information was true, fair and adequate to enable the investors to make a well-informed decision, etc.

"But, after listing, the company is not performing properly," said the securities regulator.

The merchant banks have been asked to explain their position regarding the regulatory decision.

"…you are advised to submit an explanation within 7 (seven) working days regarding why the Commission won't suspend your issue management activity," said the securities regulator.

Asked, BSEC executive director and spokesperson Mohammad Rezaul Karim has acknowledged that the securities regulator's letters were sent to some merchant banks.

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