A government committee has singled out 9.33 lakh small investors who will get IPO quota under the stock compensation package.
The small investors, who lost money to stockmarket downswings last year, will enjoy a 20 percent quota in all initial public offerings (IPOs) -- government and private -- to be issued in 2012 and 2013.
However, the small investors who will enjoy the 20 percent IPO quota cannot apply for the IPO in general quota.
The panel, headed by Investment Corporation of Bangladesh's Managing Director Md Fayekuzzaman, submitted the list of the small investors to the Securities and Exchange Commission yesterday, officials said.
The committee prepared the list in line with a government stimulus package on the stockmarket, which witnessed a price debacle in January-February last year.
According to the package, the affected small investors will also get a 50 percent waiver of interest on loans. The interest to be waived must be accrued within the 2011 calendar year or fiscal 2011-12.
The government also gave the small investors scope to pay the remaining 50 percent of the interest through quarterly instalments in three years.
Earlier on November 22, the SEC unveiled a 21-point market stabilisation package, including a special scheme on compensating the retail investors who faced losses.
The SEC had formed a six-member committee, headed by Fayekuzzaman, to find out ways to compensate the retail investors who traded with small investment or on credit.
On February 22, the committee came up with a set of recommendations, including waiver of interest and IPO quota for small investors, and submitted those to the government.
The committee had defined that adversely affected small investors are those who deposited Tk 10 lakh or less of own money in beneficiary owner's (BO) accounts, and incurred losses.
The small investors, who lost money to stockmarket downswings last year, will enjoy a 20 percent quota in all initial public offerings (IPOs) -- government and private -- to be issued in 2012 and 2013.
However, the small investors who will enjoy the 20 percent IPO quota cannot apply for the IPO in general quota.
The panel, headed by Investment Corporation of Bangladesh's Managing Director Md Fayekuzzaman, submitted the list of the small investors to the Securities and Exchange Commission yesterday, officials said.
The committee prepared the list in line with a government stimulus package on the stockmarket, which witnessed a price debacle in January-February last year.
According to the package, the affected small investors will also get a 50 percent waiver of interest on loans. The interest to be waived must be accrued within the 2011 calendar year or fiscal 2011-12.
The government also gave the small investors scope to pay the remaining 50 percent of the interest through quarterly instalments in three years.
Earlier on November 22, the SEC unveiled a 21-point market stabilisation package, including a special scheme on compensating the retail investors who faced losses.
The SEC had formed a six-member committee, headed by Fayekuzzaman, to find out ways to compensate the retail investors who traded with small investment or on credit.
On February 22, the committee came up with a set of recommendations, including waiver of interest and IPO quota for small investors, and submitted those to the government.
The committee had defined that adversely affected small investors are those who deposited Tk 10 lakh or less of own money in beneficiary owner's (BO) accounts, and incurred losses.