Opening BO account online yet to pick up

The online BO account opening system introduced a year back by the securities regulator failed to pick up due to the lack of campaign, brokers say.

Only 6,331 BO or Beneficiary Owners’ accounts were opened online until January 2022, accounting for nearly 1 per cent of the total BO account, according to the latest data from CDBL or the Central Depository Bangladesh Ltd (CDBL).

When someone wants to invest and trade in the stock exchanges, he/she needs to create a BO account with the CDBL through a stockbroker or a merchant bank.

At present, the CDBL has more than 20.50 lakh BO accounts.

The idea to introduce the online BO account opening system was that the number of investors in the bourse would increase further.

On February 9, 2021, the Bangladesh Securities and Exchange Commission (BSEC) launched the system so that investors can open BO accounts sitting at home.

During the inauguration, the regulator said opening BO accounts will now be easier as investors need not go to brokerage houses in person.

“Investors showed no interest due to lack of publicity,” Brac EPL Investments Formal Chief Investigation Officer Debabrata Sarker told The Business Post.

Now, those who are interested are also opening BO accounts through someone, he said.

After launching the system, the highest number of BO accounts was opened online in September 2021 when the figure was 1,073.

At the inaugural event, BSEC Commissioner Shaikh Shamsuddin Ahmed had said the regulator wants to spread brokerage services across the country. Therefore, digital BO account opening will enable the participation of investors in rural areas and abroad.

Opening BO accounts online, will not only increase the participation of investors in the capital market but also be fresh investments because of new BO accounts, he had said.

How to open BO accounts online

To open BO accounts online, investors need to visit the CDBL website and select the “depository participant” option. Then, they need to fill up the necessary information, including their NID numbers.

For doing so, investors need to have an email ID and a valid mobile number to log into the CDBL website to open BO accounts online.

An investor will have to upload a NID number, bank account number, bank’s cheaque copy, his/her photograph, scanned copy of his/her signature in different stages for opening a BO account online.

Then, he or she must select a brokerage house from the system and the house would approve the BO account by checking all the documents.

If approved, the investor will get a notification via email and mobile phone.

After receiving the BO fee, the respective brokerage house will upload the account to the CDBL system.

Investors need to pay Tk 450 for opening a BO account to a brokerage house through online payment systems.