Notification related to the consent of issue of capital

NOTIFICATION
November 14, 2010
No. SEC/CMRRCD/2009-193/67/Admin/--------------: Whereas, the Securities and Exchange Commission (hereinafter referred to as “the Commission”) deems it fit that the consent already accorded by the Commission, or deemed to have been accorded by it, or to be accorded by it in future, to the issue of capital, should be subject to certain further conditions in the interest of investors and the capital market; Now, therefore, in exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), and in consultation with the Government, the Commission hereby imposes the following further conditions to the consent to the issue of capital already accorded by it, or deemed to have been accorded by it, or to be accorded by it in future, namely:- (a) Minimum paid up capital (existing + proposed) requirement for initial public offering (IPO) shall be Tk. 30 (Taka thirty) crore; (b) Minimum size of IPO shall be Tk. 12 (Taka twelve) crore, but that shall not be less than 10% (ten percent) of the total paid up capital (existing + proposed); (c) In case of IPO under Book Building Method as per the Securities and Exchange Commission (Public Issue) Rules, 2006, by the Thrust Sectors (namely, Power and Gas Infrastructure) companies, the requirements for minimum period of commercial operation and profitability shall be 1 (one) year; (d) In case of IPO under Book Building Method, the Eligible Institutional Investors (EII) shall not be allowed to participate in the bidding unless they participate and quote price in the Road Show for setting the indicative price of concerned issue. The EII participating in the Road Show and quote price must also participate in the bidding. The issuer and issue manager will jointly submit the attendance sheet and the quoted price by the EII along with the draft prospectus to the Commission; and (e) Market lot shall be Tk. 1,000.00 (Taka one thousand) worth of securities at face value or multiple thereof.

This Notification shall supersede the previous Notification No. SEC/CMRRCD/2006-159/27/Admin/03-40 dated 11th March, 2010, published in the Bangladesh Gazette on April 12, 2010, and shall have immediate effect. By order of the Securities and Exchange Commission

Md. Ziaul Haque Khondker
Chairman.