Securities market regulator Bangladesh Securities and Exchange Commission (BSEC) on Thursday suspended the initial public offering (IPO) quota of 15 merchant banks and eight asset management companies, for failing to comply with securities rules.
As per the rules, each merchant bank must submit at least one IPO issue proposal to the regulator every two calendar years.
According to the BSEC's decision, the inactive investment banks will not get any quota facilities in the IPOs.
The 15 out of 65 merchant banks are: BetaOne Investments, Cosmopolitan Finance, EC Securities, Exim Islami Investment, FAS Capital Management, First Security Islami Capital and Investment, Grameen Capital Management, GSP Investment, Hal Capital, IL Capital, Jamuna Bank Capital Management, Meghna Capital Management, PLFS Investments, Sonali Investment, and Strategic Finance Limited.
The eight out of 51 asset management companies are: Alif Asset Management Company, Invest Asia Capital Asset Management, BDV Asset Management Company, Meghna Asset Management, Bloominance Asset Management Company, Blue-Wealth Assets, Belt and Road Asset Management, and BMSL Asset Management Company Limited.
BSEC spokesperson Mohammad Rezaul Karim told The Business Post, “Merchant banks and asset management companies are enjoying quota facilities in IPOs and qualified investor offers (QIOs) as per the rules.”
“However, few merchant banks and asset management companies were not abiding by the rules and regulations, hence the decision,” he said.
