SEC sits today on amendment of book building method

Express (August 11, 2011)

The securities regulator will sit with the stakeholders today (Thursday) for giving a final shape to the proposed amendment of the book building method, officials said.

The officials said the presidents of both the stock exchanges, the president of Bangladesh Association of Publicly Listed Companies (BAPLC), the representatives of Bangladesh Merchant Bankers Association (BMBA) and the president of Asset Management Association will attend today's meeting.

Meanwhile, the Securities and Exchange Commission (SEC) has made 20 recommendations, including the extension of a lock-in period for eligible institutional investors (EIIs) from 15 days to six months, to amend the book building method.

The government ordered suspension of the method in January, 2011, following widespread allegation about its abuse and stock market crash.

SEC's another recommendation said the indicative price of an issue will be such that it does not exceed 15 times of weighted average earning per share of the preceding three years or three times of net asset value (NAV), whichever is lower but not less than net asset value per shares.

By this time, the securities regulator sent the draft of its recommendations to the stakeholders and also sought public opinions on the issue.

Chittagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed said the CSE already submitted a draft proposal regarding the amendment of book building method to the SEC.

"However, the regulator will finalise the amendment based on overall discussion with the stakeholders," Mr. Ahmed said.