BB asks FIs to keep provision against ‘other assets’
All unadjusted prepaid entries, unadjusted prepaid legal expenses, protested (uncollectible debt) bills and other expenses or losses of financial institutions are now shown as ‘other assets’, classified as bad or lost. A central bank circular, issued Sunday, says the FIs concerned must maintain provisioning of up to cent per cent against such dud money or asset. The circular, issued from the Department of Financial Institutions and Markets of Bangladesh Bank, says these instructions will be effective from the quarter ended September 2021.According to the notification, any prepaid expenses for salary and allowances, travelling, entertainment, advertisement and business development etc that remain unadjusted for 12 (twelve) months or beyond will be classified as ‘bad and loss’ and 100-per cent provision must be maintained.Financial Institutions will submit classification and provisioning statement of other assets within 30 days after the end of the each quarter to the Department of Financial Institutions and Markets of Bangladesh Bank and upload the same in enterprise-data warehouse (EDW) of Bangladesh Bank. Financial Institutions will ensure reflection of the position of ‘other assets’ classification and provisioning in annual financial statements as per the dos laid out in this circular.
BSEC okays Tk 150m IPO of BD Thai Food
The securities regulator has approved the initial public offering (IPO) proposal of BD Thai Food and Beverage Ltd to raise Tk 150 million from the capital market. The Bangladesh Securities and Exchange Commission (BSEC) endorsed the company’s IPO proposal at a commission meeting on Sunday – presided over by BSEC Chairman Prof. ShibliRubayat-Ul-Islam, according to a press release. As per the BSEC approval, BD Thai Food will offload 15 million ordinary shares at an offer price of Tk 10 each – under the fixed price method. The company will utilise the IPO proceeds for purchasing machinery and equipment, land development, building construction, and bearing the IPO expenses. According to the financial statement for the year ending on June 30, 2020, the company’s net asset value (NAV) per share (NAV without revaluation) was Tk 12.82 and (NAV with revaluation) Tk 14.23, and the weighted average earnings per share (EPS) for the last five years stood at Tk 0.63.Incorporated in 2010, BD Thai Food and Beverage Limited (BTFBL) is a concern of BD Thai Group. The company is engaged in producing beverage, confectionary and spice items. In Sunday’s meeting, the BSEC also allowed Union Bank Ltd to distribute 15 per cent IPO shares to its employees with a lock-in period of two years.
Central bank eases export trade
Exporters are now allowed to directly dispatch shipping documents of their export consignments to their foreign buyers, as a further measure for facilitating Bangladesh’s external trade. Bangladesh Bank Sunday issued a circular to this effect, asking for bringing the contents of this circular to the notice of the ADs (authorised dealers) constituents concerned. Currently, the ADs are required to pass all shipping documents covering exports from Bangladesh as per declaration on EXP Form within 14 days from the date of shipment as par the chapter 8 of the Guidelines for Foreign Exchange Transactions-2018 (GFET).In terms of FE Circular No. 17, dated April 23, 2019, exporters are required to report transport/shipping information immediately in BB online reporting portal, and submit relevant documents within 14 days from the date of shipment, inter alia. Exporters should adhere to the instructions to observe regulatory compliances as required under the Foreign Exchange Regulation Act 1947.
‘World Investor Week’ begins today
The Bangladesh Securities and Exchange Commission (BSEC) will observe the fifth ‘World Investor Week 2021’ to create awareness among the general investors. The week begins today (Monday). The stock market regulator will launch the ‘World Investors Week-2021’ in accordance with the declaration of International Organisation of Securities Commissions (IOSCO), a global cooperative of securities regulatory bodies, according to a BSEC statement issued on Sunday.The key message of the IOSCO World Investor Week-2021 campaign is based on two themes: Sustainable Finance and Fraud & Scam Prevention. These messages compliment such online investing, initial coin offerings, and basics of investing, digital learning and online education.On October 5, Association of Credit Rating Agency in Bangladesh and Bangladesh Merchant Bankers Association will organise a programme. On October 6, Chittagong Stock Exchange and Venture Capital and Private Equity Association of Bangladesh will organise a programme. Central Depository Bangladesh Ltd and Central Counterparty Bangladesh Ltd will organise programme on October 7.On October 11, Bangladesh Association of Publicly Listed Companies and Bangladesh Institute of Capital Market and on October 12, Dhaka Stock Exchange (DSE) will organise separate programme.