The stock market regulator inaugurated the online beneficiary owners’ (BO) account opening system, in Dubai as well as at its own office in Dhaka on Tuesday.
The Bangladesh Securities and Exchange Commission (BSEC) launched the system so that stock investors, including non-resident Bangladeshis (NRBs), can open BO accounts from the convenience of their homes.
BSEC commissioner Shaikh Shamsuddin Ahmed inaugurated the system at an event jointly organised by the securities regulator and the Central Depository Bangladesh Ltd at the BSEC office premises in Dhaka.
The regulator said opening BO accounts will now be easier as investors will not need to go to brokerage houses in person.
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said the regulator wants to spread brokerage services across the country. Therefore, digital BO account opening will also enable the participation of investors in rural areas.
He said it will reduce the time for investors and minimise the number of accounts opened using fake information.
Opening BO accounts online, will not only increase the participation of investors in the capital market but also be fresh investments because of new BO accounts, he believed.
The CDBL formulated the online BO opening system as value-added services following the BSEC instruction.
Investors must have BO accounts to subscribe to initial public offering shares and to trade shares on the secondary market.
To open BO accounts online, investors need to go to the CDBL website and select the “depository participant” option. Then, they need to fill in the necessary information, including their NID card numbers.
Investors will need an email account and a valid mobile number to log into a website to open BO accounts online.
An investor will need to upload NID card number, bank account number, bank’s cheque copy, his/her photo, scanned copy of his/her signature in different stages for opening a BO account online.
The investor must select a brokerage house from the system and the house would approve the BO account by checking all the documents.
If approved, the investor will receive a notification on his/her email account and mobile phone.
After receiving BO fee, the respective brokerage house will upload the account on the CDBL system.
Investors will be charged Tk 450 for opening a BO account with a brokerage house. Investors will also be able to pay BO account fees through online payment systems.
BSEC commissioner Mizanur Rahman, CDBL managing director Shuvra Kanti Choudhury and representatives of the stock exchanges were also present in the event.
