Finance Minister AMA Muhith has approved stock market regulators' proposal for extending the tenure of IPO 20% quota for affected small stock investors by one year more.
The extension of 20% quota in the Initial Public Offering (IPO) came following the request of Bangladesh Securities and Exchange Commission ((BSEC).
Approving the proposal, Muhith said: “This is the last extension.”
Earlier, the stock market regulator placed a proposal to the Finance Ministry to extend the tenure of IPO quota by one year to June 30, 2017 considering the market situation. The ministry extended the tenure to June 30, 2016 for the third time.
As per the approval, the small affected stock investors will enjoy the quota facilities for next one year.
The government has decided to provide a 20% quota in all the IPOs for the small investors, who were affected during 2010-11 stock market debacle, to be offered by the private companies to the listed with the stock exchanges.
Apart from 20% quota for affected investors, 10% quota is preserved for mutual funds and 10% for non-resident Bangladeshis (NRBs) in the IPOs.