The Bangladesh Securities and Exchange Commission (BSEC) has imposed an upper limit on the bidding process of institutional investors in the book building system, in order to check manipulation in the bidding process.Institutional investors can now bid only up to 20% higher or 1.2 times the fair value of primary shares, and there will be no lower limit for bidding.The securities regulator has issued a directive in this regard.As per the directive, the simple average of net asset value and the value obtained by the earnings yield method would be the fair value of the offered shares.To find out the value in the yield method, bidders have to divide a company's expected rate of earnings by its actual rate of earnings and then multiply the outcome by paid-up value.The normal rate of earnings will have to be at least 10% of the paid-up value.Meanwhile, to calculate the expected rate of earnings, bidders must divide the five-year average of profit after taxes by the paid-up share capital – including share premium – and then multiply the figure by 100.While calculating their net asset value, companies must exclude: fictitious assets, bad debts, preference shareholders' claims, and proposed dividends.Then whatever the fair value is, no bid can exceed the upper limit of 1.2 times.
The Bangladesh Securities and Exchange Commission on September 21 set the maximum limit on margin loan facilities based on the movement of Dhaka Stock Exchange’s key index, DSEX.· If the DSEX falls below 4,000 points, the margin loan would be at the rate of 1:1, said a BSEC directive.· If the DSEX remains between 4,001 to 5,000 points, the clients of the intermediaries would get margin loan at the rate of 1:0.75.· If the index remains between 5,001 to 6,000 points, the intermediaries can give margin loans at 1:5 and for above 6,001 the rate would be 1: 0.25.· Currently the margin loan is set at 1:0.5.
• Bangladesh Securities and Exchange Commission (BSEC) has directed all concerned to refrain from spreading any prediction or price forecasting or undisclosed information in any forms including social media, otherwise the BSEC will take legal actions as per securities laws as well as digital security act-2018. The securities regulator also issued a directive on Wednesday to all persons/entities concerned that are directly or indirectly related to or associate with the securities market, refrained from using name of BSEC, DSE or CSE and their logo with the profile or page of individual or group of any forms including social media.
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday ordered trading settlements for companies in the junk stocks, or "Z" category, to be T+3 from Wednesday instead of T+9 at the country's bourses. The country’s prime bourse, Dhaka Stock Exchange, now trades 53 junk stocks. The securities regulator also ordered that the shares of a company will be traded under "Z" category if it fails to distribute cash dividend or hold AGM in two years. A company will be transferred to the "Z" category if its production remains closed for six months or more. The BSEC also said that a company having net operating loss or negative cash flow from operations for two consecutive years would also be transferred into the "Z" category. A listed company will also be transferred into the said category if its negative retained earnings crosses its paid-up capital.• As per BSEC’s new order, sponsors and directors holding shares of "Z" category companies will not be able to sell, transfer, hand over and/or pledge them. The companies, which have been in the "Z" category for two years, will have to reform their existing board of directors within the next 45 working days. If they fail to do so, those sponsors and directors will not remain as directors in those companies or in any other listed companies and capital market intermediaries. The stock market regulator will appoint special auditors and observers to ensure compliance and good governance. After the reformed board is put in place, if they too fail to improve the business within four consecutive years, then the stock exchanges will delist the companies.
The Bangladesh Securities and Exchange Commission (BSEC) will allow the brokerage firms to open foreign outlets for non-resident Bangladeshi investors. BSEC Chairman Professor Shibli Rubayat-ul-Islam recently gave informal directions to the managing directors of both stock exchanges. The stock exchanges will take necessary steps in this regard. According to the direction, interested brokerage firms will be able to open foreign outlets for non-resident Bangladeshi investors in several countries. The investors will be able to complete money settlement, cash deposit and withdrawal by using the outlets. Share trading-related activities will be completed through the outlets. When investors deposit any currency from abroad, that currency will be converted into taka in their Beneficiary Owners Account.
The government is borrowing heavily from the banking sector as the coronavirus pandemic has hit revenue collection, while expenses have gone up, a researcher has said, reports bdnews24.com. It borrowed BDT 109.58 billion from the commercial banks in the first 43 days of the new fiscal year to Aug 12. It has also repaid the Bangladesh Bank BDT 25.36 billion. The government has set a target to borrow a total of BDT 849.8 billion from the sector in the fiscal year 2020-21.
Alliance Financial Services Limited has signed a MOU with Shamsul Alamin Real Estate Limited on 16 March 2017 for providing Issue Management & Corporate Advisory services for the forthcoming IPO of the company under Book Building Method. Mr. Alamgir Shamsul Alamin, Managing Director, Mr. Arafin Shamsul Alamin, Director (Finance) and Mr. Bikash Chandra Saha, CFO of Shamsul Alamin Real Estate Limited and Mr. Tapan K Podder FCA, FCMA, Chairman, Mr. Muhammad Nazrul Islam FCMA, Managing Director & CEO and M. Sumit Podder, Manager of Alliance Financial Services Limited were present in this signing ceremony
A Road Show for Initial Public Offering (IPO) of Shamsul Alamin Real Estate Limited under Book-Building Method was held on Wednesday, 19 April 2017 at Grand Ballroom, Radisson Blu Dhaka Water Garden. Eligible Institutional Investors,Directors and top officials of the Company, representatives from Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange, Ltd., officials from Issue Manager, Alliance Financial Services Limited and Registrar to the Issue, Banco Finance & Investment Limited were present in the event.