BSEC plans to allow large firms on small cap board
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Friday
January 27, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
FRIDAY, JANUARY 27, 2023
BSEC plans to allow large firms on small cap board

Stocks

Salah Uddin Mahmud
05 April, 2021, 09:15 pm
Last modified: 05 April, 2021, 09:29 pm

Related News

  • BSEC approves appointment of CSE's independent directors
  • Why market regulator appointed special auditor at Safko Spinning
  • BSEC allows scam-hit National Bank to issue Tk500cr bond
  • BSEC worried about Oimex’s new owners
  • Don't listen to rumours setting trap for stock investors:  BSEC chair

BSEC plans to allow large firms on small cap board

With a view to making the small cap board active, the commission now wants to enlist some companies in the board within this financial year

Salah Uddin Mahmud
05 April, 2021, 09:15 pm
Last modified: 05 April, 2021, 09:29 pm
BSEC plans to allow large firms on small cap board

KEY TAKEAWAYS

  • Small-cap board has become invalid
  • BSEC rejected 3 IPO applications recently
  • No company to be listed on this board within 2 years
  • Issue managers are not interested in small-cap for low fees
  • Small-cap rules should be simple and short
  • Small entrepreneurs are not as much capable to comply with rules

The Bangladesh Securities and Exchange Commission (BSEC) plans on relaxing rules on qualified investors offer (QIO) to enlist firms with more than Tk30-crore paid-up capital on the small capital board of the bourses.

The securities regulator made this decision considering that the small capital platform was formed in 2019 to attract businesses with a small capital base to the stock market. This objective has virtually failed and become invalid, as no company has yet got approval to be listed with the board on either the Dhaka Stock Exchange or the Chittagong Stock Exchange.

With a view to making the small cap board active, the commission now wants to enlist some companies in the board within this financial year.

If companies whose paid-up capital is above Tk30 crore but are not able to go for an IPO to be listed with the small cap board for the QIO, they can get a waiver of rules, says the commission.

This would make it easy for such companies to comply with the rules when they go for an IPO.

As per existing rules, companies with paid-up capital of Tk30 crore or less can apply to get listed with the small capital platform on the bourses.

According to sources, three companies whose applications for IPO were rejected by the securities regulator recently have applied for exemption. After getting an exemption, they will apply for the QIO.

The paid-up capital of Master Feed Agrotec is Tk57.15 crore, Subra Systems Tk50 crore and Oryza Agro Tk59.08 crore.

Mohammad Rezaul Karim, executive director of the BSEC, said no small-cap company got approval to be enlisted with the small cap board in the past two years due to a number of reasons. "But now the commission wants to activate this board. It will amend the rules to allow companies with more than Tk30-crore paid-up capital to come to this board," he added.

Issue managers are not interested in bringing small capital companies to the market as they pay low fees, sources said.

According to them, rules for small capital companies should be short and simple. Small entrepreneurs are not as capable as listed companies to comply with all of these rules.

In November 2018, the BSEC gave final approval to the Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Capital Companies) Rules 2018 with some changes and amendments.

 

 

 

Economy / Top News

BSEC / Large firms / Small Cap Board / Large firms

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: Bloomberg
    India's Adani slammed by $48 bln stock rout, clouding record share sale
  • Infograph: TBS
    State banks spend 80% of their forex for govt imports in H1
  • Global central banks preaching on pay are enforcing squeeze too
    Global central banks preaching on pay are enforcing squeeze too

MOST VIEWED

  • Higher costs, strong dollar slash BBS Cables profit by 92%
    Higher costs, strong dollar slash BBS Cables profit by 92%
  • BBS Cables' Q2 profit plunges as order drops amid high production costs
    BBS Cables' Q2 profit plunges as order drops amid high production costs
  • Coppertech's net profit declines 89% in Q2
    Coppertech's net profit declines 89% in Q2
  • Walton's profit declines by 63.41% in second quarter
    Walton's profit declines by 63.41% in second quarter
  • Represenattional image. Photo: Collected
    BD Lamps to invest Tk3cr for new production line
  • Pinnacle Bicycle to invest $21.96m to set up factory in Ctg
    Pinnacle Bicycle to invest $21.96m to set up factory in Ctg

Related News

  • BSEC approves appointment of CSE's independent directors
  • Why market regulator appointed special auditor at Safko Spinning
  • BSEC allows scam-hit National Bank to issue Tk500cr bond
  • BSEC worried about Oimex’s new owners
  • Don't listen to rumours setting trap for stock investors:  BSEC chair

Features

Sketch:TBS

Why we need consumer education for consumer wellbeing

8h | Thoughts
Dr Ahsan H Mansur, Executive Director, Policy Research Institute. Illustration: TBS

Twin shocks call for stronger domestic policy response

9h | Thoughts
December-er shohor, taxi taken for airport and the Park Street bathed in lights. Photo: Jannatul Naym Pieal

Exploring Kolkata on foot, empowered by Google Maps

10h | Explorer
Island hopping in Bangladesh?

Island hopping in Bangladesh?

12h | Panorama

More Videos from TBS

Kajol’s road paintings bring change in Gafargaon

Kajol’s road paintings bring change in Gafargaon

1d | TBS Stories
Carew & Company witnessed a remarkable growth

Carew & Company witnessed a remarkable growth

1d | TBS Stories
After all the controversies, how is Shah Rukh Khan's ‘Pathaan’?

After all the controversies, how is Shah Rukh Khan's ‘Pathaan’?

1h | TBS Entertainment
PCB recalls cricketers from BPL ahead of PSL

PCB recalls cricketers from BPL ahead of PSL

1d | TBS SPORTS

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Four top bankers arrested in DSA case filed by S Alam group 
Bangladesh

Four top bankers arrested in DSA case filed by S Alam group 

3
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]