Bangladesh News

Mar 18th
Home arrow News arrow Business News arrow SEC approves Tk 100cr ICB NRB mutual fund
SEC approves Tk 100cr ICB NRB mutual fund PDF Print E-mail
Thursday, 13 March 2008

Staff Correspondent

The Securities and Exchange Commission at a meeting Tuesday gave approval to the largest ever mutual fund ICB AMCL 2nd NRB Mutual Fund for floating initial public offers.

‘The Tk 100 crore mutual fund is the biggest among the mutual funds listed with the bourses,’ said Farhad Ahmed, executive director of the SEC.

He said the ICB Asset Management Company Ltd, a subsidiary of the Investment Corporation of Bangladesh, floated the mutual fund aiming the non-resident Bangladeshis.

Of the total offer, NRB investors will be allowed to buy shares of Tk 60 crore, local general public to buy shares of Tk 20 crore, sponsors to buy shares of Tk 10 crore and the existing mutual funds will buy remaining shares of Tk 10 crore as 10 per cent quota is reserved for the funds, said the SEC official.

Presently, a total of 15 mutual funds are listed with the stock exchanges. Of them, ICB and its subsidiaries have floated 12 mutual funds while BSRS and private sector companies Aims and Grameen have one such fund each. Tk 17 crore Grameen One is the second largest among the mutual funds.

The size of ICB AMCL 1st NRB Mutual Fund is Tk 10 crore, the SEC official informed. In the meeting, the SEC also extended deadline for submitting bank certificates for the existing beneficiary owner’ accounts holders up to June 30. Farhad said existing BO accounts holders had to fulfil the obligations within six months after issuance of the order in October last year.

‘Banks have received a circular from the Bangladesh Bank regarding the certificate lately,’ said the SEC ED adding, ‘We have extended the deadline considering the BO accounts holders’ convenience.’

The SEC on Tuesday also decided that from the next IPO, it would forfeit application money of the applicants whose beneficiary owner’s accounts would be found invalid in the share allotment period.

The SEC official said the commission found that number of invalid BO accounts in IPO allotment period was rising recently. Currently, the number of BO accounts, through which investors take part in trading, is around 14 lakh but most of the accounts are used only to participate in the IPO, said SEC sources.

Meanwhile, the DSE officials Tuesday met the SEC authorities to consult over the resumption of trading of Rupali Bank shares on the bourse after the government on Monday scrapped a deal with Saudi Arabian prince Bandar to sell off 93.26 per cent shares in the bank, said Salahuddin.

The SEC informed the Dhaka Stock Exchange that it would wait until receiving an official communique from the government to decide over the resumption of trade of Rupali Bank shares on the bourses.

‘The regulatory body has suggested us to wait till the communique is received,’ said Salahuddin Ahmed Khan, chief executive officer of the DSE. A senior official of the SEC said the commission would take decision over the resumption of the trading of the shares of the bank after getting the communique from the government.

With the suggestion of the SEC, the DSE and the Chittagong Stock Exchange kept the trading of the bank’s shares suspended since November 5 last year because of volatility in the bank’s share price following confusing reports on its disinvestment process.

Comments Add New
Write comment
  We don't publish your mail. See privacy policy.
Please input the anti-spam code that you can read in the image.
< Prev   Next >