SEC increases B/O renewal fee from Tk.300 to Tk. 500

June 30, 2010

The stockmarket regulator has imposed an additional Tk 200 in annual maintenance fee on each beneficiary owner (BO) account.
The decision effective from July takes the total annual maintenance fee to Tk 500.
The Securities and Exchange Commission (SEC) took the decision at a meeting yesterday in a bid to increase government revenue from stockmarket. SEC Chairman Ziaul Haque Khondker presided over the meeting.
The maintenance fee will go to the state coffers, and the government will receive around Tk 50 crore a year from around 25 lakh BO accounts now active in capital market.
The SEC first introduced a Tk 300 annual maintenance fee in 2007 to stop the opening of fake or shady BO accounts by using other person’s information.
According to rules, of the annual fee of Tk 300, a depository participant gets Tk 100, the CDBL (Central Depository of Bangladesh Limited) Tk 150 and the SEC Tk 50.
Previously, the BO account holders had to pay a custody fee annually to the CDBL, if there were shares in the accounts. The custody fee was calculated on the basis of existing shares in a BO account and an account holder had to pay 0.05 percent of the current market value of the shares.
But it was seen in many occasions that a group of investors participate in the IPOs with many BO accounts, which ultimately cuts the real investors’ competitiveness.
A prospective investor pays up to Tk 1,000 to open a BO account.

Via: The Daily Star

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