BSEC raises investment limit for fresh QIs

The securities regulator has enhanced the investment limit for fresh qualified investors (QIs) interested to conduct trades in the exchanges' SME boards.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday took the decision of revising investment at a meeting held at the BSEC office.

As per the existing rules, a QI is required to have a minimum investment worth Tk 2.0 million to conduct trades in SME board.

From now on, a QI investor must have a minimum investment worth Tk 3.0 million to participate in trading in SME board.

The securities regulator has taken three-month time to set investment worth at Tk 3.0 million for old QIs.

Asked, a BSEC official said some irrational developments were observed in SME platform as demand was higher than the supply of shares.

"That's why, the securities regulator has extended the investment limit of qualified investors of the SME platform to keep it in a rational level," said the BSEC official.

General investors are not allowed to take part in transactions in the SME platform.

Only the QIs are allowed to conduct trades in the SME platform.

At Wednesday's meeting, the securities regulator also approved the proposal of issuing preference shares worth Tk 1.5 billion by Paramount Textile.

The company's cumulative preference shares will be fully redeemable and non-convertible.

The shares will be issued through private placements at a face value of Tk 10 each.

The company will utilise the fund for the purpose of business expansion and settlement of liabilities.

[email protected]