The Securities and Exchange Commission yesterday gave its nod to an amendment to the merchant banker and portfolio manager rules.

The stockmarket regulator at a regular weekly meeting approved the modification in the rules after scrutinising public opinion on the amendment, the SEC said in a statement signed by its Executive Director Saifur Rahman.

The SEC will soon publish a gazette notification on the modified version of the rules.

Earlier on February 20, the regulator approved the draft amendment to the rules, allowing them to raise their paid-up capital.

The paid-up capital of a full-fledged merchant bank will be Tk 25 crore, instead of the existing Tk 10 crore, according to the amendment.

The paid-up capital of a merchant bank with only one underwriting licence will be Tk 2.50 crore, instead of Tk 1 crore now, while the capital of a merchant bank with only one issue management licence will be Tk 12.50 crore instead of Tk 5 crore, as per the amendment.

The merchant banks will have to fulfil the paid-up capital requirements within a year of publishing the gazette on the amendment.

Presently, there are 43 full-fledged merchant banks in Bangladesh, while one holds the issue management, underwriting and portfolio management licence, and two others have the issue management licences.

Yesterday's meeting, presided over by SEC Chairman Prof M Khairul Hossain, also warned Union Capital Ltd, an issue manager, as it submitted draft IPO (initial public offering) prospectus of Padma Islami Life Ltd without mentioning some important information. However, the SEC later approved Padma Islami's IPO prospectus with the missing information.

The regulator at the meeting also extended the time for submitting the draft IPO prospectus of Padma Islami Life 1st Mutual Fund by six months.

The Daily Star/Bangladesh/ 4th April 2012