A total of 1.8 lakh beneficiary owners’ accounts were closed in the last week mainly due to non-payment of annual account renewal fees by the account holders.
The number of active BO accounts was 29,26,932 at the end of June, but the figure declined to 27,47,697 on Thursday, a Central Depository of Bangladesh Limited data showed.
The number of active BO accounts was 31,53,442 as of June 30, 2016.
A large number of BO accounts have been void as account holders failed to pay the annual fees before the time limit of June 30, set by CDBL.
The numbers could be double when CDBL will get full non-renewed BO accounts’ lists from all the brokerage houses, said CDBL officials.
Opening a BO account with the CDBL through a depository participant, which is usually a stockbroker or a merchant bank, is a must for trading shares at the Dhaka and Chittagong stock exchanges.
The BSEC, the capital market regulator, following pressure from the stock exchanges in principle reduced BO account renewal fee to Tk 450 from Tk 500. Of the amount, the CDBL will get Tk 100 instead of Tk 150, while the government, DPs and BSEC will get Tk 200, Tk 100 and Tk 50 respectively.
Of the active BO accounts as of July 13, individual investors operate 17,33,042 BO accounts, investors jointly operate 10.03,377 BO accounts and 11,278 accounts are operated by different companies including institutional investors, the CDBL data showed.
Of the accounts (excluding the company-owned BO accounts), 25,87,879 BO accounts are owned by Bangladeshi investors and 1,48,540 accounts owned by non-resident Bangladeshi investors, it showed.
Of the 27,47,697 accounts, 20,03,728 are owned by male investors and 7,32,691 by female investors.
Officials of different brokerage houses said the non-payment of the annual account renewal fees for each account was the main reason for the closure of the accounts as June 30 was the last day to renew the accounts.
Many investors open BO accounts only for getting returns from primary market subscribing IPO shares. The number of IPOs declined in the last few years due to bearish trend in the market and continuous modification of public issue rules by the regulatory body, market operators said.
As a result, investors remained reluctant to renew their accounts, let alone open new BO accounts, they said.
According to a Dhaka Stock Exchange report, fund raising from the capital market by issuer companies through IPOs declined by 120 per cent or Tk 468 crore in the just concluded fiscal year 2016-17 compared with that in the previous fiscal year.
According to the DSE report, 9 companies raised Tk 390 crore through IPOs in FY17 while 11 companies had collected Tk 858.30 crore from the market in FY16.
In the financial year 2014-15, Tk 1,306.97 crore was collected by 16 companies.
The number of BO accounts reached its peak at around 34 lakh in the fiscal year 2010-11, the year of market bubble-burst, as people rushed to open accounts with different brokerage houses lured by the booming share prices, especially from October to early December, 2010.
The number of BO accounts reduced in the succeeding three years.
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