TBS report
January 01, 2023 at 9:45 p.m
Last modified: January 01, 2023, 21:48
The Bangladesh Securities and Exchange Commission (BSEC) has reinstated the initial public offering (IPO) quota facilities for Sonali Investment Ltd after the company satisfied the regulatory agency’s licensing conditions.
Seeking anonymity, BSEC officials confirmed The Business Standard on the development.
According to BSEC terms, every commercial bank must submit at least one IPO proposal to the BSEC every two years and form five new portfolios annually.
In October 2021, the BSEC suspended Sonali’s quota facilities because the company failed to meet those requirements.
In October 2021, the BSEC identified 15 inactive merchant banks out of a total of 65 and decided to withhold quota facilities on the primary market until they met the required conditions.
Commercial banks and asset management companies are eligible for quota facilities for initial public offerings (IPOs) and qualified investor offerings (QIOs).
Industry insiders report that only a dozen investment banks take requirements such as underwriting and underwriting seriously, as the majority only manages portfolios.
According to insiders, some commercial banks cannot submit new IPOs to the Commission within the prescribed period due to the lack of qualified personnel. It is also noted that some commercial banks do not play an active role as market participants, prompting issuer companies to enter into listing agreements with well-known managers.
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