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Investors Scheme

The Investors' Scheme was introduced in 1977 with the objective of broadening the base of equity investment through mobilising savings of small and medium size savers for investment in the securities market. In addition to Head Office, Investment Accounts are also operated at the 7 branch offices of ICB located at Dhaka , Chittagong , Rajshahi, Khulna , Barisal , Sylhet, and Bogra. However in view of strategic changes in policy reform, from 01 July 2002 ICB Capital Management Ltd.' started opening and managing investment accounts. ICB will continue to provide services to its existing accounts only.  

Further steps were undertaken to enhance the quality and speedy service under the scheme like computerization of all activities and installation of merchandizing operation management software. This enables the management to offer better and quick service to the investors including instant supply of the financial statement, portfolio, balance of the accounts, etc. Installation of telephone banking system in Investors' Account enabling investors to collect information and operate their account over telephone was at the final stage of operations. Besides, installation of Electronic display system of DSE online trading on the floor of ICB was in progress.

Authority of Operation

An account may be operated by the account holder himself/herself or he/she may authorize to another A/c. holder of investors account of ICB by written consent in the prescribed form, some one else to operate the account on his/her behalf. In case of joint account holders, account may be operated by single or joint signatories or by authorised operator.

Margin Loan

Presently ICB grants loan up to two times against the deposits of account holder(s) subject to a maximum of Tk. 3,00,000.00 to an account. However, management of ICB, at its discretion, may limit such loan. Loans are repayable as per repayment schedule given by ICB. In the event of default of loan repayment, the outstanding amount may be recovered by sale of securities held in the account.

Portfolio Management

The account holder may use his/her equity and the loan to buy securities which ICB keeps as collateral. Purchase and sale orders are executed by ICB within the shortest possible time, subject to the availability of fund in the account and scope of matching of buyers/sellers and securities in the stock exchanges.

An account holder or his/her authorized person may place purchase/sale execution order in the prescribed form, indicating whether, the order is a limit order i.e. an specifying the max./min. price at which he/she is willing to buy /sale, or at a market price i.e. without any limit of price. The purchase and sale orders are valid for seven and ten days respectively, if not revalidated / cancelled otherwise by the account operator.

Withdrawal of Securities/Funds

All or any amount of fund or securities may be withdrawn from an account subject to keeping of minimum credit balance of Tk. 5000.00 in cash or in securities to keep the account running alive.

Application Against IPO

All activities relating to application for securities and collection of allotment letter / refund warrant and certificates, as the case may be, against the IPO are done by ICB on behalf of account holder.

Collection of Securities and Benefits

Right shares, bonus shares, dividends, interest, converted shares etc. accruing to an account are collected by ICB from the respective companies.

Registration, etc.

Registration of shares/ securities with the company is made before the closure of the company's share / debenture transfer book, after completing all the required formalities, on behalf of the account holder.

Custodial Service

Volt and other custodial arrangement for assets of the account are provided by ICB.

Counseling

In order to develop diversified and balanced portfolio to minimize risk and maximize profit, ICB provides professional advice to its clients.

Data Support

Data support in the form of securities analysis sheet, daily purchase/ sale position, statement and portfolio of each account, etc. are provided on demand and on regular interval.

Income

Incomes from investments by way of dividend, interest, bonus shares, capital gains etc. are credited to the respective account.

Expense

Interest on loan (currently-12.5%) and brokerage (0.5% for non CDS & 0.5250% for CDS) on sale/ purchase of securities are charged to the respective account. To encourage the small and medium savers, ICB at present does not charge fees for most of the services rendered by ICB to its customers, including fees for management, investment advice, custodial service(for non CDS securities),etc.

Closing of Account

An account may be closed by written order subject to settlement of fees & dues, if any. There is no provision of revival of a closed account.

Risk Management

Risk of investments in the securities market are minimized through prudent & professional portfolio management.

Important

ICB, at its discretion, may change all or any of the rules and procedures of this scheme any time.



 
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