 |
| BSEC empowers exchanges to check IPO documents |
The bourses from now on can seek information in many areas like additional disclosure, information documents and clarification from the companies willing to go public, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) Wednesday approved the exchange's revised Listing Regulations, 2015 by incorporating such provisions.
As per the Exchange's Listing Regulations, 2015 the securities regulator will start the job of approving IPO (initial public offering) proposal only after getting recommendations from the exchanges.
Mohammad Saifur Rahman, a BSEC executive director, said the regulator approved the revised listing regulation following their proposal earlier submitted to the commission.
"The governance of the demutualised exchange is more impartial. That's why the regulator empowered the exchanges by incorporating many new provisions in the listing regulations in an effort to ensure the compliance of listed companies," said Mr. Rahman, also a BSEC spokesperson.
As per the revised regulations, the exchanges will submit their primary recommendations on IPO proposal with a checklist to the BSEC.
Then the exchanges have the power to seek additional disclosure, information documents and certifications from the company to prepare final recommendation.
The exchanges will submit their final recommendation along with a declaration of listing approval to the regulatory body.
"Both the exchanges will have to submit their primary recommendation. In their final recommendations, the exchanges will clarify why they are willing or unwilling to give listing to a company," said another BSEC official having involvement with the draft preparation job of the listing regulations.
In the regulations, the regulator has also included the provision of voluntary de-listing.
"As per the regulation, a company, if it wants, can be de-listed by fulfilling the requirements mentioned in the regulations," said a BSEC official.
Earlier, the Dhaka Stock Exchange (DSE) formed an expert panel to submit opinion regarding the companies' IPO prospectus.
Later, the DSE abolished its expert panel as their IPO observations were not allegedly evaluated by the regulatory body.
Former DSE president Rakibur Rahman said the regulatory approval to the revised listing regulations is a time befitting initiative.
"Companies will not be able to go public with faulty documents if the regulatory body and both the exchanges scrutinise the documents properly," Mr. Rahman said.
The exchanges have also the authority of conducting inspection along with seeking information and explanation from the listed companies.
At Wednesday's meeting, the securities regulator also approved the IPO proposal of KDA Accessories which will raise a fund worth Tk 240 million under fixed price method.
The company will offload 12 million shares at an offer price of Tk 20, including a premium of Tk 10 for each ten taka share.
As per the audited financial statement for the year ended on December 31, 2013, the company's earnings per share (EPS) and net asset value (NAV) per share are Tk 2.29 and Tk 19.63 respectively.
The securities regulator has also approved Tk 3.0 billion Mudaraba Subordinate Bond to be issued by Al-Arafah Islami Bank. The tenure of the bond will be seven years from the date of issuance.
Al-Arafah Islami Bank will enhance its capital base with the fund to be raised by issuing the bond under Basel-II.
mufazzal.fe@gmail.com
Blogger Comment
Facebook Comment