Opening BO accounts: CDBL asked to submit report on compliances

The securities regulator has asked the Central Depository Bangladesh Limited (CDBL) to submit a report on the compliances maintained in opening investors' BO (beneficiary owner's) accounts.

The CDBL will have to submit its report to the commission within July 31 this year.

The Bangladesh Securities and Exchange Commission (BSEC) delivered its instruction through a letter sent to the managing director of the CDBL.

Meanwhile, the securities regulator issued a circular to ensure compliances required to open investors' BO accounts.

As per the circular, the depository participants (DPs) will have to address the irregularities found in investors' BO accounts by July 21.

The regulatory directive came following many non-compliances occurred during opening of BO accounts.

In its circular, the BSEC said they have recently observed that in some cases, the same national ID number, mobile number and bank account were used for opening BO accounts of another person.

"This is unlawful and unexpected," the circular said.

It also said the national ID number, mobile number and bank account of a person cannot be used for opening the BO account of another person.

"The DPs will have to address the irregularities occurred during the opening of BO accounts by July 21."

And the CDBL will have to submit a compliance report by July 31 next mentioning irregularities occurred during the opening of BO accounts," the circular further mentioned.

The securities regulator has also requested the DP's to include investors' email addresses, if any, in the BO accounts so that they can get information on the listed companies and mutual funds easily.