1.1 Forms of
Securities
1.2 Types of securities
1.2.1 Equities &
Warrants
1.2.2 Other Instruments
1.3 Security Identification Code
Registered Certificates
The prima facie evidence of entitlement is a registered certificate under the common seal of the company specifying any share or stock held by a member. Registered Certificates are issued within 90 days of allotment of securities.
Allotment Letters
Allotment Letters are issued within 40 days from the closing of the subscription list. This is basically an interim arrangement before certificates are issued. Allotment letter can be traded in the market until certificates are distributed.
1.2.1 Equities & Warrants
Ordinary shares
Ownership shares with full voting right are issued in Bangladesh. Currently no preferential shares are issued.
Debt instrument: Debenture
Debentures are debt instruments backed by the securities of fixed assets. They are issued in registered form and can usually be converted into equity shares at a specified rate and time declared at the point of issue. Debenture holders enjoy no voting right.
1.2.2 Other Instruments
Close-end Mutual fund
A fund which has a fixed number of units outstanding. A unit certificate confers ownership. Mutual funds do not redeem their shares but are tradable on a stock exchange.
Open-end mutual fund
A form of unit trust in which the managers of the trust may vary the investments held without notifying the unit holders. Open-end mutual fund unit certificates are not listed on stock exchange.
1.3 SECURITY IDENTIFICATION CODE
There is no central securities numbering system. The
stock exchanges provide an alphanumeric code for each issue for purposes of trading,
clearing and settlement.
|| Table of content || Top || Next Page ||