The Bangladesh Securities and Exchange Commission (BSEC) inaugurated the digital Beneficiary Owners' (BO) account opening system on Tuesday, in Dubai as well as at its own premises.
Stock market investors, especially non-resident Bangladeshis (NRBs), will now be able to open BO accounts online.
BSEC commissioners Professor Dr Md Mizanur Rahman and Md Abdul Halim, Managing Director of the Central Depository Bangladesh Ltd (CDBL) Shuvra Kanti Choudhury, Chief Executive Officer of Central Counterparty Bangladesh Ltd Farhad Ahmed, BSEC executive directors, and representatives of the stock exchanges were present on the occasion.
The regulator said opening BO accounts will now be easier as investors will not need to go to brokerage houses in person.
Online BO account opening will increase investors' participation in the stock market.
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said the regulator wants to spread brokerage services across the country. Therefore, digital BO account opening will also enable the participation of investors in rural areas.
He said it will reduce the time for investors and minimise the number of accounts opened using fake information.
Opening BO accounts online, will not only increase the participation of investors in the capital market but there will also be fresh investments because of new BO accounts, causing trade volume to increase, said speakers.
To open BO accounts online, investors need to go to the CDBL website and select the "depository participant" option. Then, they need to fill in the necessary information, including their NID card numbers.
Some information fills in automatically once investors submit their NID card numbers. After that, they need to fill in banking information and will receive a confirmation message if the information is correct.
Investors will also be able to pay BO account fees through online payment systems.