The committee, formed to help small investors hit hard during the 2010-11 stock market debacle, submitted Monday its final list of 933,280 affected investors to the securities regulator, officials said.
The government committee, led by ICB Managing Director Md. Fayekuzzaman, submitted the list of small investors to the Securities and Exchange Commission (SEC), after modifying the previous list with the help of merchant banks and brokerage firms.
The committee in this February finalised a set of recommendations, including offering quota facilities in the upcoming IPOs (initial public offerings), and waiving interest on margin loans, to help the small investors recoup their loss.
Small investors who had invested up to Tk 1.0 million from January 1, 2009 to November 30, 2011 in stock market are entitled to such facilities.
It suggested the Ministry of Finance (MoF) to waive 50 per cent of accrued interest on margin loans that the affected small investors had taken from brokerage houses or merchant banks.
Sources said as per the data collected from the merchant banks and brokerage firms to implement the stock market bailout package, the number of affected small investors finally stands at 933,280.
Among them, 39,120 investors are the clients of 25 merchant banks. Besides, 739,883 investors have been included in the final list from the brokerage firms of the Dhaka Stock Exchange (DSE). A total of 154,277 small investors have been selected from the brokerage firms of the Chittagong Stock Exchange (CSE).
According to the committee's decision, an investor will not be able to apply generally for the IPOs, if s/he intends to avail the quota facility, as offered under the special package. In March, the state-owned Investment Corporation of Bangladesh (ICB) declared to waive interest on margin loans, amounting to around Tk 140 million, taken by investors.
The ICB MD said the respective merchant banks and brokerage firms will offer the declared waiver on interest of margin loans.
"That's why the lenders need not wait for the list of the affected investors. The decision of giving waiver became effective from the next day of announcing the package by the finance minister," Mr. Fayekuzzaman said.
On the other hand, the SEC will take decision regarding fixing quota for the affected investors in the IPOs by analysing the list of the affected investors.