The capital market regulator has sought public opinion on draft ‘Qualified Investors Offer by Small Capital Companies’ Rules, 2018” aiming to attract SME companies to be listed on the bourses.
The Bangladesh Securities and Exchange Commission (BSEC) has sought opinion, advice or objection, if any thereon within two weeks from June 14.
The BSEC has recently approved the draft Qualified Investor Offer by Small Capital Companies Rules, 2018 which has already been published on its website and in newspapers for public review.
As per the BSEC, any company with paid-up capital between Tk 50 million to below Tk 300 million can apply for getting listed with the small cap board.
The commission, following bourses’ proposal, approved the amendment to the BSEC Rules on Qualified Investor Offer by Small Capital Companies.
Earlier, the Dhaka Stock Exchange (DSE) submitted a number of proposals regarding necessary amendments to BSEC QIO by small capital companies’ rules, 2016 as well as draft DSE small capital companies listing regulations, 2018.
The regulator also omits the provision of market maker from the existing BSEC rules for QIO.
As there will be no market maker, the new proposed board may face high frequency of volatility and would send the small investors in jeopardy.
Therefore, the commission proposed additional rule making mandatory for all kinds of investors to make a minimum Tk 0.5 million transaction at a time, which would allow them in the secondary trading under the separate board.
Furthermore, in case of the paid-up capital of the company crossing Tk 300 million, such company must compulsorily apply for listing with the main board.
The board of directors of the small companies will also get exemption from the rules of mandatory 2.0 per cent and jointly 30 per cent shares holding.
The regulator also decided to relax submission of the red-herring prospectus/information memorandum for small capital companies.