IPO quota stopped for 3 merchant banks
The companies are Bengal Investments Ltd, CAPM Advisory Ltd, and PLFS Investments Ltd
The stock market regulator has decided to stop providing the initial public offering (IPO) quota to three merchant banks as they have violated securities rules.
They are Bengal Investments Ltd, CAPM Advisory Ltd, and PLFS Investments Ltd.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision at a meeting on Wednesday.
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Besides, it will start the process of cancelling the banks' licences if they fail to meet their paid-up capital deficit within 30 June.
Merchant banks get the IPO quota facility for IPO application and bidding.
Sources said the three merchant banks had not complied with the minimum paid-up capital rules. The regulator gave them a deadline for this, but they could not meet that.
As per the rules, the paid-up capital of a full-fledged merchant bank will be Tk25 crore.
Besides, the amount will be Tk2.5 crore if the bank wants to work as an issue manager and Tk12.5 crore if it wants to work as an underwriting and portfolio manager.
Meanwhile, the BSEC has decided to fine three brokerage firms for violating securities rules.
Nexus Securities will be fined Tk2 lakh, MTB Securities Tk5 lakh, and First Lead Securities Tk2 lakh.
