Bangladesh Securities and Exchange Commission (BSEC) issued a notification increasing the IPO application fee for the merchant banks and broker-houses.
The BSEC has increased initial public offerings (IPOs) fee to Tk50,000 from Tk5,000 while the right issue fee has also been raised to Tk50,000 from Tk10,000.
Rezaul Karim, executive director and spokesperson of BSEC, on Tuesday said the fee of market mediators has been updated after 25 years.
“The fee was set in 1996. After a long period, the fee has been increased as the markets size is mush bigger now and the incomes of stock brokers and merchant banks have also gone up by a lot. Considering the present market situations, the fee has been increased,” he said.
Sharif Anwar Hossain, a senior member of DSE Brokers Association of Dhaka Stock Exchange, said, “The BSEC can increase the charges according to the size of the market.”
“But it would be better to increase the fee step by step instead of doing that at a time,” he said.
According to the new rules set by the BSEC, the application form fee for a Depository Participant (DP) license is Tk 0.5 million and the license fee is Tk 10 million with annual renewal fee of Tk 2.0 million. Prior to this, there was no fee for applying for a DP license. Only the annual renewal fee was Tk50,000.