BSEC gave guidelines for pricing

The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, has issued guidelines for pricing or cut-off price in a book-building manner. The commission has directed to determine three methods. The directive was signed on Monday (February 1) by BSEC chairman Prof Shibli Rubaiyat-ul-Islam.

The directive states that eligible investors should form a bidding committee of at least two members to determine the reasonable price. The members of that committee will be knowledgeable, efficient, qualified and experienced. The committee will recommend to participate in the bidding after the share valuation analysis. Who will specify the amount and value of the shares for bidding.

In this case, the committee has been asked to follow 3 methods. The methods are- Net Asset Value Method, Yield Method and Fair Value Method.

Eligible investors will decide to participate in the bidding in the light of the recommendations of the committee. This decision and the procedure of the committee should be preserved by the eligible investor for commission or stock exchange investigation. Eligible investors and committees for bidding have also been asked to practice due diligence and professional evaluation.

Sunbd/NJ