Some 390 brokerage firms and merchant banks presently are working to complete IPO (initial public offering) application process after the securities regulator brought changes in public subscription rules, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) made submission of application for IPO shares through merchant banks and brokerage firms mandatory from April 1 last instead of applying through banks.
According to the BSEC information, a total of 233 brokerage firms of Dhaka Stock Exchange (DSE) got the responsibility of receiving investors' IPO applications.
On the other hand, a total of 112 brokerage firms of the Chittagong Stock Exchange (CSE) are doing the job.
Besides, 45 merchant banks also got the responsibility for managing the IPO applications.
According to DSE officials, the whole public subscription of Aman Feed was completed through the brokerage firms and merchant banks instead of banks following the regulatory directive.
"After the issuance of the regulatory directive no IPO application was submitted through banks," a DSE official said.
The premier bourse initiated a pilot project to receive IPO applications through brokerage firms from July 15, 2011.
Later, the DSE enhanced its project to implement the regulatory directive.
The securities regulator brought changes in IPO application process to reduce sufferings of investors who earlier had to stand in the long queue for submitting IPO applications through banks.
The premier bourse also made the demand for involving brokerage firms in conducting the IPO application process.
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