• Corruption must be fought from the top
  • Reclaiming Jahangirnagar from a ‘godfather’ VC
  • No room for indifference in streamlining brickfields
  • Justice SM Murshed: worthy of his name and fame
  • Obama apologetics
  • Spring celebrated at Rabindra Sarobar
  • Rumana wins award for first time
  • Russian plane crash kills 31
  • Iran vows to stick to nuclear ‘path’
  • Prices of aromatic rice go up by 50pc in a week
  • BMBA agrees to resolve omnibus complexities
  • Dope cheats beware!
  • Djokovic beats Murray for Miami treble
  • 3 cops hurt as Shibir men attack CU shuttle train
  • Unity needed to oppose US imperialism
  • 7 killed in RAB ‘crossfires’ in Narsingdi, Dhaka
  • No respite from outages though generation up
  • River route, ports not ready for transit: shipping secy
  • 2 killed as AL, BNP clash in Meherpur
  • JU teachers skip class, exam for VC’s resign
  • City fountains in bad shape
  • NBR to scan Destiny tax files, ACC to launch probe
HOME  BUSINESS
  
Print Friendly and PDF

BMBA agrees to resolve omnibus complexities

Staff Correspondent

Merchant bankers at a meeting with the Dhaka Stock Exchange on Monday agreed to open separate beneficiary owners’ accounts in names of the clients under omnibus accounts.
At the meeting held at the DSE board room, the bourse formed a committee to facilitate the process.
Md Fayekuzzaman, managing director of Investment Corporation of Bangladesh, will lead the committee and formulate a guideline for incorporating BO accounts into the omnibus accounts.
Existing practice is that clients’ accounts under an omnibus account, a single account which contains multiple investors’ accounts, are identified by code numbers.
‘The committee will submit its report within six months,’ Fayekuzzaman told New Age.
He said other members of the committee would come from Central Depository of Bangladesh Ltd, Dhaka Stock Exchange and Bangladesh Merchant Bankers’ Association.   
On Monday, the DSE also decided to launch its online trading system within 10 weeks after missing an earlier deadline of March 25 due to omnibus accounts complexities.
The DSE and the BMBA were at loggerheads over the omnibus issue as the bourse wanted separate BO accounts under an omnibus account while merchant bankers denied doing so.
‘For transparency in the trading system, the meeting has agreed that we need separate BO accounts under an omnibus account,’ DSE president Rakibur Rahman told New Age after Monday’s meeting.
‘The merchant bankers raised some technical issues about incorporating BO accounts into omnibus accounts which we also feel need to be addressed. So, we formed a committee to facilitate the process,’ he said.
The Securities and Exchange Commission on March 1 sat with the DSE and the BMBA to discuss the new trading software of the bourse and the practice of omnibus accounts.
The DSE at the meeting said that the bourse was all set to launch online trading system from March 4, but the new system didn’t have any option to trade through omnibus accounts.
The new software of DSE can only detect a BO account and a client will be allowed to operate under that account.
According to the SEC notification issued on June 16, 2008, the commission amended the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rule 1996 with a provision of keeping separate beneficiary owners accounts for clients.
The SEC on several occasions asked the BMBA to provide the details of individual accounts under omnibus accounts to the CDBL. But, the association did not do so saying that it would be time consuming and lengthy process for the merchant banks.
The practice of omnibus accounts was highly criticised by the probe committee that had investigated the 2011 stock market scam.




Reader’s Comment

comments powered by Disqus
   

Prices of aromatic rice go up by 50pc in a week

A file photo shows a trader weighing rice at a wholesale market in Dhaka. Prices of aromatic rice went up by almost 50 per cent in retail markets in the city in last one week amid the government decision to withdraw ban on aromatic rice export. — New Age photo
Prices of aromatic rice went up by almost 50 per cent in retail markets in the city in last one week amid the government decision to withdraw ban on aromatic rice export. Different types of aromatic rice were being... Full story

BMBA agrees to resolve omnibus complexities

Merchant bankers at a meeting with the Dhaka Stock Exchange on Monday agreed to open separate beneficiary owners’ accounts in names of the clients under omnibus accounts. At the meeting held at... Full story

Remittance inflow drops in March as dollar weakens

Inflow of remittance dropped further in March from that of previous two months because of the decline in value of dollar against Bangladeshi Taka. The country received remittances worth $1.107 billion... Full story

Non-life insurers to give up to 15pc commission

The country’s non-life insurance companies will now be able to give highest 15 per cent of the premium as commission to their agents. In a circular, the Insurance Development and Regulatory... Full story

Dhaka stocks gain

Dhaka stocks extended gains on Monday amid increased turnover when investors switched to financial stocks from other shares. DGEN, the benchmark general index of Dhaka Stock Exchange, gained... Full story

SEC to take tough stance on co directors’ mandatory shareholding: DSE chief

The Securities and Exchange Commission would stick to a tough stance on mandatory shareholding requirement by directors of the listed companies, DSE president Rakibur Rahman said on Monday. Full story

Sayeed H Chy elected ONE Bank chairman

Sayeed H Chowdhury
The board of directors of ONE Bank has recently elected Sayeed H Chowdhury as its chairman for a one-year term from March 29. The board has also elected Asoke Das Gupta as its vice-chairman, said... Full story

Oil higher in Asia

Oil prices were higher in Asia on Monday as dealers were boosted by figures showing a rise in manufacturing activity in China, the world’s largest energy user, analysts said. Full story

Yen falls on weak Japan business outlook survey

The yen fell against the dollar and euro in Asia on Monday after a Bank of Japan survey showed weaker-than-expected business confidence among the nation’s major manufacturers. Full story

Global business groups warn India over tax plan impact

Indian prime minister Manmohan Singh attends a joint news conference with European Commission president Jose Manuel Barroso and European Council president Herman Van Rompuy at the EU-India summit in New Delhi recently. — Reuters photo
International trade groups representing more than 2,50,000 companies have warned Indian prime minister Manmohan Singh that new taxation proposals by his government have led foreign businesses to... Full story

European outlook dims as Asia brightens

An eighth straight month of contraction in the eurozone’s manufacturing sector eclipsed brighter news from Asia on Monday, dimming chances of a strong rebound in the global economy. Full story

Japan business confidence remains weak

Confidence among major Japanese manufacturers remains weak despite the yen’s fall from historic highs and an ongoing tentative recovery following last year’s quake-tsunami, figures showed Monday. Full story
  • Online Poll


    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader