CAPITAL MARKET LEGAL SERVICES IN BANGLADESH
Best Capital Market Law Firm in Bangladesh, FM Associates
It is very ordinary for a lawyer who does general practices to have bits of knowledge on everything that invokes their attention. However, getting specialized in something that deals with finance makes a practice undoubtedly very challenging, hence requires a great deal of competency.
FM Associates provides the best Capital Market Lawyers in Bangladesh who needs to be absolutely in point as any failure may diminish your future business prospects. In the situation where it requires securing a loan and analyzing the market in the light of legal complications, the need for a competent Capital Market lawyer stays an open secret for everyone. This is even a bigger problem for foreign investors who tend to look for Capital Market lawyers in Bangladesh, as they surely know that an individual lawyer or a firm without having proper finance credentials could work in this area of law. Our full pledged finance department cumulatively with our legal associates ensures the best quality of work that one may find in Bangladesh.What is IPO and Capital Market
An IPO refers to ‘Initial Public Offering’. It means, when for the first time a privately-owned company offers shares of stocks to the public. It is a route through which a private company reach the wider investor portfolio by issuing stock to the public.
IPO is a great tool for any private company to grow further since they can raise more fund by it. Moreover, it is a worthy objective with many potential benefits such as it greatly helps the companies in fundraising, publicity, enables to use publicly traded stock as means of payment and many other benefits. The publicity issue is very important for any company since it increase their business opportunities. Furthermore, IPO also enables a company to invest in the development of its infrastructure and through buying new equipment etc. In addition, it is also sometimes a great way to pay off any debt or outstanding bills.
How to Make Public Offering in Bangladesh
In Bangladesh, to make a public offering, two rules must be followed: Securities and Exchange Commission (Public Issue) Rules, 2001 and Securities and Exchange Commission (Public Issue) Rules, 2006. Besides, there are other certain rules and regulations which must be followed and complied with (on the basis of applicability). These are: Security and Exchange Ordinance, 1969; Securities and Exchange Rules, 1978; Securities and Exchange Commission Act, 1993; Securities and Exchange Commission (Issue of Capital) Rules, 2001, Securities and Exchange Commission (Public Issue) Rules, 2006; Companies Act 1994; Income Tax Ordinance, 1984; Income Tax Rules, 1984; Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards.
On the other hand, a Capital market is a type of market where financial securities like bonds, stocks, etc. are treaded. The participants to such trade are individuals and institutions. Capital market can be seen as a medium of transaction between the investors and the corporations. Moreover, Capital market is on the best sources of capital creation in the economy and boosts the economic growth. Capital market facilitates trading of securities, encourage a massive range of ownership of productive assets, facilitates settlement of transition among others.
Types of Capital Market in Bangladesh
Capital Market comprises of two types of market: primary markets and secondary markets. Primary markets deal with the trade of new issues of stocks and other securities; on the other hand, the trade of exchange of existing or formerly-issued securities are dealt by Secondary markets. In other words, while the Primary market solely deals with trading of fresh securities; the secondary market deals trade of old/existing securities. Moreover, there are two important division of capital market: stock market and bond market.
Primary markets are beneficial to both the investors and new enterprises, sine, the investors can utilize their extra money through investing and the new enterprises or companies can expand their field by raising more money. There are certain ways of raising funds, for example, many companies invite investors to invest in their company by offering their prospectus. In the Secondary market, the securities are bought and sold by the investors. Thus, unlike Primary market, there are no fresh share in the secondary market.
In Bangladesh, there are two Stock Exchanges: Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Dhaka Stock Exchange was founded back in 28th April, 1954 (formerly known as the ‘East Pakistan Stock Exchange’) and in 1995, Chittagong Stock Exchange was established. Both the stock exchanges are aimed at developing a strong platform for entrepreneurs for raising capital, creating an investment opportunity, improving market transparency and attracting foreign investors to invest in Bangladesh. In Bangladesh, the regulator of the capital market is the Securities and Exchange Commission (SEC) which implements rules and regulations and works to develop the capital market. The only central depository in Bangladesh is the Central Depository Bangladesh Limited (CDBL).
How can fma provide the best of this services, FMA’s provides the best Capital Market Lawyers in Bangladesh who are well equipped with handling complex capital market issues.
We provide the following services:
- Assisting in the listing process with the DSE, CSE;
- Issuing Initial Public Offering (IPO);
- Drafting prospectus;
- Ensuring compliance with the securities regulations governing the capital markets;
- Ensuring that all corporate and regulatory approvals are obtained at the prescribed time;
- Attending AGM;
- Preparation of all corporate documents and agreements required for the transaction;
- Advice on legal and regulatory matters;
- Reviewing Memorandum and Articles of Association of the company;
- Confirming whether the company is ready to list on an exchange;
- Making any sort of legal amendments that may be required to the Company’s corporate documents;
- Reviewing contracts;
- Drafting documents;
- Negotiate contracts;
- Legal advice on product’s rating;
- Conducting Due diligence.