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DSE forms body to review IPOs

| Updated: October 29, 2019 11:59:43


DSE forms body to review IPOs

The premier bourse has formed a high-profile committee to review the IPO (initial public offering) proposals in a bid to ensure quality of the listings on the country's stock exchanges.

The board of the Dhaka Stock Exchange (DSE) formed the body at a meeting held at its office in the city on Monday.

The initiative of the DSE came after the Bangladesh Securities and Exchange Commission (BSEC) gave an assurance on Thursday that it would evaluate the DSE's observations while approving IPO proposals.

Independent director of DSE Prof Md. Masudur Rahman will head the six-member review committee, according to officials.

Other members of the committee are two independent directors, Justice Siddiqur Rahman and Brigadier General Md. Mostafizur Rahman, shareholder director Minhaz Mannan Emon and the DSE managing director.

The head of the DSE's listing department has been made the member secretary of the review committee.

The meeting also decided to form an expert panel of 12 to 15 auditors, who will assist the IPO review committee.

"Two or three members from the expert panel will be assigned to assist the review committee in scrutinising each IPO proposal," said a DSE official.

The review committee has been asked to prepare the terms of reference (ToR) for review of IPO proposals and other relevant proposals within next two working days.

In a statement, Prof Masudur Rahman, the chief of the review committee, said the IPO proposals will be reviewed by the persons having no links with the companies concerned.

DSE director Minhaz Mannan Emon said, "Taking the advantage of disclosure-based IPO system, some companies having weak fundamentals are being listed on the stock exchanges."

He also said the DSE has formed the review committee to prevent the companies from going public with window-dressed financials.

DSE director Md Rakibur Rahman said the securities regulator has assured the DSE of taking into account the exchange's observation while approving IPO proposals.

"The DSE will be allowed to conduct quick physical inspection if discrepancies are found in the IPO prospectus. We want to play our due role in ensuring quality IPOs," he added.

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