The Bangladesh Securities and Exchange Commission (BSEC) has raised the requirement of investment in the stocks for eligible investors to enjoy a quota in every initial public offering (IPO).
The BSEC took the decision on Monday at a commission meeting in a bid to raise the liquidity in the stock market through institutional investors.
The decision came at a time when the market suffered massive losses in the last few weeks.
Each eligible investor except for the pension fund, approved provident fund and gratuity fund investors will have to increase their investment to Tk3 crore from the existing Tk1 crore on the cut-off date to avail the IPO quota benefit.
Each approved pension fund, provident fund and gratuity fund needs to raise their investment to Tk1.50 crore from Tk50 lakh.
Meanwhile, the BSEC ordered Electronics Subscription System team to analyze the approval letter of the National Board of Revenue, audited financial reports and bank statements of each pension fund, provident fund and gratuity fund.
These funds will not be allowed to invest excess funds than the amount mentioned in their financial reports during IPOs, it added.