The Bangladesh Securities and Exchange Commission has recommended the government to extend the deadline for quota facility for initial public offerings for the investors affected in 2010-11 market crash by six more months.
The commission has sent a request letter to the finance division of the finance ministry for extending the deadline for the 20-per cent IPO quota facility till June 30 this year, a BSEC official told New Age.
Although the ministry said that the quota facility would not be extended further after December 31, 2017, the commission moved the appeal again considering the interest of the affected investors, he said.
The government has extended the deadline of the quota facility for several times since its introduction in 2012.
The quota facility increases affected investors’ chance of investing in IPO shares and paves the way to make some quick profits as the IPO shares are usually traded at higher prices at the secondary market.
Finance minister AMA Muhith on March 4, 2012 announced a special package for the capital market investors including the 20-per cent quota facility in IPOs for the year 2012-2013 for small-scale investors who suffered because of the 2010-11 stock plunges.
Under the package, 50 per cent of interest on the past year’s margin loans was also waived. According to a BSEC report on the 2010-11 stock market crash, at least 9.60 lakh investors were affected by the debacle.
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