Bangladesh stock market news: Small Capital Board has become almost invalid | The Business Standard
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
THURSDAY, MAY 19, 2022
THURSDAY, MAY 19, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Small Capital Board has become almost invalid

Stocks

Salah Uddin Mahmud
15 August, 2020, 09:20 pm
Last modified: 15 August, 2020, 10:11 pm

Related News

  • BD Lamps returns to profit after pandemic gloom
  • Stocks tumble for 2nd day, but companies post good earnings
  • Unusual stock dividends will need BSEC consent 
  • Dissecting the delusion between stock trading and investment
  • Midas Financing absorbs pandemic shock in first quarter

Small Capital Board has become almost invalid

So far only three companies applied to the BSEC for qualified investor offering, but two of them have already withdrawn application

Salah Uddin Mahmud
15 August, 2020, 09:20 pm
Last modified: 15 August, 2020, 10:11 pm
Photo: TBS/Saikat Bhadra
Photo: TBS/Saikat Bhadra

The small capital companies' board started its journey on April 30, 2019.

Finance Minister AHM Mustafa Kamal inaugurated the board. But no small capital company got approval for getting listed with the Dhaka and Chittagong stock exchanges after that.

So, the Small Capital Board has become almost invalid at the two exchanges.

So far only three companies applied to the Bangladesh Securities and Exchange Commission (BSEC) for qualified investor offering. But two of them withdrew their application later.

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

They said rules for small capital companies should be short and simple. Small entrepreneurs are not as much capable as the listed companies to comply with all of these rules.

However, the stock exchanges are now ready to start trading activities in the Small Capital Board.

Dhaka Stock Exchange Managing Director Kazi Sanaul Hoq told The Business Standard: "We want to give a waiver to small capital companies for getting listed with their board."

"Small capital companies get access to the stock market through issue managers. If the regulator approves any small capital company we are ready to start trading activities in the Small Capital Company Board."

Meanwhile, the Chittagong Stock Exchange Chairman Asif Ibrahim told The Business Standard the CSE small capital companies' board is ready for trading. "We will start trading if any company gets approval from the regulator."

AFC Capital Limited CEO Md Mahbub Hossain Mazumdar told The Business Standard small capital companies do not want to come to the market mainly for three reasons.

"Many laws and regulations have to be complied with for qualified investor offerings. It is not possible for small capital companies to comply with these many regulations." 

The managements of small companies think they will not get the expected price of shares as only qualified investors can do trade in the small capital companies, Mahbub Hossain said.

"Also, the fee fixed for the issue managers are making them reluctant to get involved."

Monalisa Ceramics BD Limited wanted to raise Tk1 crore by issuing 10 lakh ordinary shares through the Small Capital Board.

The company had applied to the CSE board. It wanted to use this fund to get machinery and equipment.

The company was supposed to borrow Tk2.80 crore from banks as a term loan for completing the projects. However, its management decided to withdraw its qualified investor offering.

Meera Agro Inputs Limited, a seed processing company, applied to the securities regulator for raising Tk5 crore through the DSE's Small Capital Board by issuing 50 lakh ordinary shares.

The company wanted to use the fund for land development, working capital and business development of existing projects. But it submitted a fake audit financial statement to the regulator, claimed a DSE source.

Before the securities regulator took any action, the company withdrew its qualified investor offering application.

Meera Agro sells seeds of rice, maize, cauliflower, cabbage, carrot, bitter gourd, tomato, watermelon, cucumber, chili, kohlrabi, and radish in the local market.

Nialco Alloys Limited have already submitted qualified investor offering to raise Tk10 crore to get machinery and to repay bank loans in fixed price method.

The regulator is scanning the company's documents for qualified investor offering proposals.

Nialco Alloys mainly manufactures high-grade bronze and brass ingots.

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.

Top News

Small Capital Board / Stock exchanges

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

  • Falling trade barriers and hyper-efficient logistics produced an age of abundance for many. But the last four years have brought an escalating series of disruptions.Source: Bloomberg
    Age of scarcity begins with $1.6 trillion hit to world economy
  • Turkey's President Tayyip Erdogan holds a news conference during the NATO summit at the Alliance's headquarters in Brussels, Belgium on 14 June  2021. Photo: Reuters
    Turkey has told allies it's a 'no' to Sweden and Finland's NATO bid - Erdogan
  • FILE PHOTO - Workers load palm oil fresh fruit bunches to be transported from the collector site to CPO factories in Pekanbaru, Riau province, Indonesia, April 27, 2022. REUTERS/Willy Kurniawan
    Indonesia to lift palm oil export ban from Monday

MOST VIEWED

  • Md. Showkat Ali Chowdhury, Chairman of the Board of Directors of Eastern Bank Ltd.( EBL) presides over the 30th AGM of the Bank held today, May 19.  EBL Directors M. Ghaziul Haque, Mir Nasir Hossain, Salina Ali,  Mufakkharul Islam Khasru, Gazi Md. Shakhawat Hossain, K. J. S Banu, Zara Namreen, Ashiq Imran, Dr. Toufic Ahmad Choudhury, Ruslan Nasir, Ali Reza Iftekhar, Managing Director and CEO and Md. Abdullah Al Mamun, Company Secretary are also seen in the picture. The AGM approved 12.50 per cent cash and 12.50% per cent stock dividend for the shareholders for the year 2021.
    EBL declares 25% dividend for 2021
  • Representational Image. Photo: Collected
    GPH Ispat, Fortune Shoes eye jute industry
  • 1 arrested over spreading rumours about the stock market
    1 arrested over spreading rumours about the stock market
  • BSEC launches probe against Abul Khayer Hero and allies
    BSEC launches probe against Abul Khayer Hero and allies
  • Market support pills fail, DSEX hits 10-month low 
    Market support pills fail, DSEX hits 10-month low 
  • SS Steel sees profit decline despite revenue growth in March quarter
    SS Steel sees profit decline despite revenue growth in March quarter

Related News

  • BD Lamps returns to profit after pandemic gloom
  • Stocks tumble for 2nd day, but companies post good earnings
  • Unusual stock dividends will need BSEC consent 
  • Dissecting the delusion between stock trading and investment
  • Midas Financing absorbs pandemic shock in first quarter

Features

Sketch: TBS

'Food inflation is an unavoidable consequence of currency devaluation'

8h | Interviews
The open-browser-tabs question also tells an interviewer how much of an internet native the job applicant might be. Photo: Noor-a-Alam

The best question to ask a job applicant

8h | Pursuit
Illustration: TBS

Ugly business: Politics in workplace

7h | Pursuit
Illustration: TBS

‘Do you have insurance?’: Life of a life insurance agent

10h | Panorama

More Videos from TBS

How a university teacher and PHD holder become farmer

How a university teacher and PHD holder become farmer

2h | Videos
Dhaka University's Botanical garden home to some of world's rarest plants

Dhaka University's Botanical garden home to some of world's rarest plants

2h | Videos
Cannes Film Festival 2022 resumes after 2 years

Cannes Film Festival 2022 resumes after 2 years

23h | Videos
Pension is coming for all

Pension is coming for all

23h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

4
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

5
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

6
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

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

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab