BSEC urged not to approve IPO below Tk 2.0b paid up capital

The small investors Monday urged the securities regulator not to approve initial public offering (IPO) with paid up capital below Tk 2.0 billion as the vested quarters resort to manipulate the low-cap companies.

The investors under the banner of Bangladesh Share Investors' Association (BSIA) made the demand and  gathered in front of the Dhaka Stock Exchange Building at around 12.30 pm and formed a human chain shortly.

They alleged that paid-up capital of most the IPOs approved by the Bangladesh Securities & Exchange Commission (BSEC) in recent years were below Tk 2.0 billion.

"As the number of share of these low cap companies is very low, the manipulators can easily manipulate these companies's share price," said a leader of BSIA.

The low cap listed companies share price jumped many folds in recent weeks without any price sensitive information indicates that the manipulators remained active in the market, he said.

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