Around 65,235 new BO accounts were opened in the past five months as investors were more confident in pouring funds into the primary market rather than the secondary one.
Guaranteed profit through initial public offerings (IPOs) encouraged the investors to bet on primary shares, brokers said.
To trade in the stock market and apply for primary shares, an investor has to open a BO (beneficiary owner’s) account with the Central Depository Bangladesh Ltd through a depository participant, which is usually a stockbroker or a merchant bank.
The data as of May 30, 2019 showed the total number of BO accounts increased to 2,845,026 which was 2,779,791 in January 01, 2019.
Among the BO account holders, 2,076,695 are males and 755,075 females, while the remaining 13,256 belong to different companies.
Market analysts said BO accounts increased in recent months due to rise in IPOs in recent time although mostly low-cap companies.
“It is a good sign for the country’s stock markets as new investors are entering the capital market,” said a leading broker while commenting on the rise of new BO accounts.
Many retail investors always look for risk-free options of making quick-profit, said a merchant banker.
All the IPOs were oversubscribed manifold, as investors rushed for primary shares, expecting good returns from the investment, he said.
In 2018, as many as 56,448 new beneficiary owner (BO) accounts were opened, according to CDBL data.
Currently, an investor has to pay Tk 450 per annum to keep his/her BO account active.
The number of BO accounts reached its peak at around 3.40 million in the fiscal year 2010-11, the year of market bubble-burst, as people, lured by the booming share prices, then had rushed to open accounts with different brokerage houses.
