Public Issue Application Process
For
Public Issue Application Process
To be enlisted in SEC (Security Exchange Commission) every limited
company has to go through a systematic process. It is called as Public
Issue Application Process. To do this process every organization has to
issue IPO (Initial Public Offering). The new Public Issue Application
Process are done with 4 steps. These steps are given below:
Step-1 (Applicant)
[Link] customer account within 25th working day from the date of
publication.
[Link] prescribed paper or electronic form ( containing Customer ID,
Name, BO account, Number of Securities applied for, Total amount and category
of the applicant. At the same time,
a) No margin facility advance or deferred payment is permissible. In case of
margin account, amount should be segregated.
b) Applicants submit a single draft against two applications with making service
charge.
Step-2 (Intermediary)
3. Maintained separate account named “Public Issue Application Account”. The
Stockbroker/Merchant shall:
a) Separate customer account, availability of fund, block amount equivalent to the
application money.
b) The account maintained within the first banking hour of next day of the cut off
date and in portfolio case, the amount transferred to the account.
c) The amount equivalent to the aggregate application money to issue a certificate.
4. To block account, issue a certificate to the Stockholder/ Merchant Banker.
5. Applicants shall enlist the draft information against their particulars.
6. Category wise list of applicants with customer ID, Name, BO account number,
Number of Securities applied for and within three working days from the cut-off
date with electronic format.
7. Next working day, the applicants submitted drafts containing its information and
preserve for custody.
8. The application preserved up to 6 month from listing of the securities with
exchange.
Step-3 (Issuer/ AMC of Mutual Fund)
9. Applicants consolidated list are post to website and CDBL shall
verify the BOIDs.
10. On the next working day, CDBL provide database of the applicants
containing BO Account number, Name, Addresses, Parents’ Name,
Joint Account and Bank Account Information and Verification report.
11. Scrutinizing the applications, categorized consolidated list of valid
and invalid applicants and final within 10 working days from the date
of receiving information from the exchanges.
12. The Issuer and issue manager shall conduct applicants within three
working days from the date of reporting to the Commission and
Exchanges, if do not receive observation.
13. Lottery results shall post on their websites within six hours and Commission and
Exchanges within twelve hour.
14. Within two working days of conducting lottery The Issuer shall:
a) Categorized list of the successful and unsuccessful applicants in electronic format
to the respective Exchange.
b) Unsuccessful applicants shall penal provisions to the Commission and Exchanges
mentioning the penalty amount against each applicant.
c) Successful applicants enlisted in electronic format with digital signatures.
d) Consolidated data in electronic text format in a CDROM to CDBL to credit the
allotted shares to respective BO accounts.
Step-4 ( Intermediary)
15. On the next working day, allotment letters are in electronic format and instruct
them to:
a) Successful applicants Escrow Account opened for subscription and unblock the
amount of unsuccessful applicants.
b) Penalty amount of applicants to penal provisions to the Issuer’s Escrow Account
along with a list.
16. On the next working day of receiving document from the Exchanges, the
Stockbroker/Merchant Banker shall request its Banker to:
c) Release the amount blocked for unsuccessful applicants.
d) Remit the aggregate amount of successful applicants and penalty amount of
unsuccessful applicants.
17. On the next working day, bankers shall unblock the amount blocked in the
Account(s) and remit the amount to ‘Escrow’ account.
18. Releasing the application money which was blocked the applicant will be informed
about allotment of securities. If any applicants want to withdraw the application
money, the charge will be TK 5.00 per withdrawal.
19. All the drafts by Foreign applicants shall be deposited in the ‘Escrow’ account.
Issuer will be transferred through banking channel within 10 working days.
Miscellaneous
20. The Issuer/AMC of Mutual Fund, Issue Manager(s), Stockbrokers and Merchant
Bankers shall ensure compliance of the above.
21. The bank drafts (FDD) shall be issued considering TT Clean exchange rate of
Sonali Bank Ltd. on the date of publication of abridged version of prospectus.
22. Amount deposited and blocked in the “Public Issue Application Account” shall not be withdrawn
or transferred during the blocking period. Amount deposited by the applicants shall not be used
by the Stockbrokers/Merchant Bankers for any purpose other than public issue application.
23. The Issuer/AMC of Mutual Fund shall pay the costs related to data transmission, if claimed by
the Exchange concerned up to an amount of Tk.2,00,000.00 (taka two lac) for a public issue.
24. The Stockbroker/Merchant Bankers shall be entitled to a service charge of
Tk.5.00 (taka five) only per application irrespective of the amount or category. The
service charge shall be paid by the applicant at the time of submitting application.
25. The Stockbroker/Merchant Banker shall provide the Issuer/AMC of Mutual Fund
with a statement of the remittance and drafts sent.
26. The Issuer/AMC of Mutual Fund shall accumulate the penalty amount recovered
and send it to the Commission through a bank draft/payment order issued in favor of
the Bangladesh Securities and Exchange Commission.
27. The concerned Exchange are authorized to settle any complaints and take
necessary actions against any Stockbroker/Merchant Banker in case of violation of any
provision of the public issue application process with intimation to the Commission.