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| bangladeshiiponews |
The securities regulator has started amending the listing regulations of Dhaka Stock Exchange (DSE) making its say mandatory in the IPO process.
The regulator wants to make the bourse's say on any initial public offering (IPO) mandatory. With that end in view such a provision will be incorporated in the revised regulations.
The move on submission of mandatory IPO observations by the exchange has been initiated following an allegation of the premier that its observation was not evaluated by the regulatory body.
The officials of the Bangladesh Securities and Exchange Commission (BSEC) said if the proposed amendment was approved, the regulator would take its decision on IPO approval only after receiving the observation from the exchange.
"As per proposed amendment, the premier bourse will have to prepare its observation in accordance with public issue rules," said a senior BSEC official.
He said that the regulator would also take opinions from the premier bourse before approving the amendment.
When asked, a senior official of the premier bourse has said evaluation of the exchange's IPO observation is more important than the mandatory provision for submitting observation by the exchange.
"We appreciate the regulatory move regarding the mandatory submission of IPO observation by the stock exchange," the DSE official said.
Presently, a company, whose IPO proposal is approved by the regulator, is listed with the premier bourse in accordance with the DSE Listing Regulation, 1999.
The DSE formed a 14-member expert panel on April 25, 2012 to examine the draft prospectuses of the companies which submitted IPO proposals to go public.
The panel's terms of reference include reviewing the companies' balance sheet, financial accounts, business performance, credit rating, valuation, risk factors and the IPO offer price mentioned in the prospectuses.
Later, the DSE dissolved the panel, as their observations were not taken into consideration by the securities regulator while approving IPO proposals.
The BSEC officials said the regulator was also working on how a listing provision of companies having small capital base could be incorporated into the amendment to the DSE listing regulations.
Earlier, the BSEC formed a body to submit a report on formation of a separate board for such companies.
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