The securities regulator has slashed drastically the minimum investment limit for an investor to be qualified for trading on the Small Capital Platform of the exchanges.
The move is to attract more investors on the platform where the number of scrips is now on the rise.
The Bangladesh Securities and Exchange Commission (BSEC) in a notification on Thursday said any investor registered with the electronic subscription system (ESS) of the exchanges at time of Qualified Investors Offers (QIOs) and any investor maintaining a minimum investment of Tk 2.0 million or above in the listed securities at market value/cost, which is higher as per the portfolio statement, shall be eligible as qualified investors.
Earlier, the threshold was Tk 10 million.
It said that the Central Depository Bangladesh Limited (CDBL) shall provide detailed information of the eligible investors on the basis of condition about trading at the secondary market of Small Capital Platform of the exchanges on quarterly basis to the stock exchanges and the exchanges shall register automatically and update such list of eligible investors accordingly.
The BSEC notification said that the exchanges shall provide fully free automated (online/offline) registration at free of cost for the purpose of trading of securities listed with the platform.
The BSEC issued the notification in exercise of the power conferred by section 20A of the Securities and Exchange Ordinance (1969).
The Small Capital Platform is a dedicated growth market for small-and medium-sized companies.
Currently, 10 SMEs are listed with the DSE. They are: Apex Weaving and Finishing Mills Ltd., Bengal Biscuits Ltd., Himadri Ltd., Krishibid Feed Ltd., Mamun Agro Products Ltd., Master feed Agrotec Ltd., Mostafa Metal Industries Ltd., Nialco Alloys Ltd., Oryza Agro Industries Ltd. and Wonderland Toys Ltd.
