It is not uncommon for an attorney who practices general law to possess tidbits of information on any subject that intrigues them. Nevertheless, specializing in a field associated with finance unquestionably presents a formidable challenge and consequently necessitates an exceptional level of expertise.capital market legal services in bangladesh.
FM Associates offers the most qualified capital market legal services in Bangladesh, whose judgments must be impeccable, as any error could jeopardize your company’s future prospects. When obtaining a loan and analyzing the market in the context of legal complexities are involved, the fact that a competent capital market legal services is required remains a closely guarded secret. This is an even greater concern for foreign investors seeking capital market attorneys in Bangladesh, as they are undoubtedly aware that a firm or individual attorney lacking the appropriate finance credentials could practice in this field. Together with our legal associates, our fully committed finance department guarantees the highest quality of work one could possibly encounter in Bangladesh.Definitions of IPO and capital market legal services.
The term ‘IPO’ stands for ‘Initial Public Offering’. It occurs when a privately held company offers shares of stock to the public for the first time. By means of this mechanism, a private company can expand its investor base by offering stock to the general public.
An IPO is an excellent instrument for the expansion of any private company, as it enables the company to raise additional capital. Furthermore, this is a commendable goal that offers numerous potential advantages, including substantial support for companies in terms of fundraising and publicity, the ability to utilize publicly traded stock as payment, and numerous others. Publicity is an extremely vital concern for any organization, as it expands their business opportunities. Moreover, an initial public offering (IPO) permits a business to make investments in its infrastructure, equipment purchases, and other similar endeavors. Additionally, it is occasionally an excellent method for paying off debt or outstanding expenses.
Capital Market Legal Services in Bangladesh
Two regulations must be adhered to in order to conduct a public offering in Bangladesh: the Securities and Exchange Commission (Public Issue) Rules, 2001; and the Securities and Exchange Commission (Public Issue) Rules, 2006. Furthermore, there exist additional specific rules and regulations that necessitate adherence and compliance, contingent upon their relevance. The aforementioned regulations are as follows: the Securities and Exchange Commission Act of 1993; the Securities and Exchange Ordinance of 1969; the Securities and Exchange Rules of 1978; the Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards; the Companies Act of 1994; the Income Tax Ordinance of 1984; and the Securities and Exchange Commission (Public Issue) Rules of 2006.
A capital market, conversely, is a category of market where financial instruments such as equities, bonds, and others are traded. Such trade involves both institutions and individuals as participants. The capital market functions as a conduit through which transactions take place between corporations and investors. Furthermore, the capital market is one of the most effective means of generating capital for the economy and stimulates economic expansion. The capital market promotes a vast array of ownership structures for productive assets, facilitates the resolution of transition, and facilitates the trading of securities, among other functions.
Capital Market Varieties in Bangladesh
The capital market is divided into two distinct categories: primary markets and secondary markets. Primary markets are responsible for the trading of newly issued stocks and other securities. Secondary markets, on the other hand, handle the exchange of previously issued or extant securities. Put simply, the primary market is dedicated exclusively to the trading of newly issued securities, whereas the secondary market facilitates the trading of pre-existing securities. Furthermore, the capital market is comprised of two significant segments: the bond market and the equity market.
Primary markets are advantageous for both investors and new businesses, as investors can put their excess capital to good use by investing, and new businesses can expand their operations by raising additional capital. There are specific methods of raising capital; for instance, numerous businesses solicit investor interest by distributing their prospectuses. The secondary market is where investors purchase and sell securities. Thus, in contrast to the primary market, the secondary market does not receive any new shares.
Dhaka Stock Exchange (CSE) and Chittagong Stock Exchange (DSE) are the two stock exchanges in Bangladesh. The Dhaka Stock Exchange, formerly referred to as the ‘East Pakistan Stock Exchange’, was established on April 28, 1954. Comparatively, the Chittagong Stock Exchange was founded in 1995. Developing a robust platform for entrepreneurs to raise capital, generating investment opportunities, enhancing market transparency, and enticing foreign investors to invest in Bangladesh are the objectives of both stock exchanges. The oversight and development of the capital market legal services in Bangladesh is the responsibility of the Securities and Exchange Commission (SEC), which enforces regulations and guidelines. Central Depository Bangladesh Limited (CDBL) operates as the sole central depository institution in Bangladesh.
In what way can FMA deliver the highest quality capital market legal services ? FMA delivers the finest.
Attorneys specializing in capital market legal services in Bangladesh who are adept at managing intricate capital market matters.
We offer the subsequent capital market legal services s:
Providing support in the listing procedure with the DSE and CSE;
The responsibilities include: – Conducting an Initial Public Offering (IPO); – Composing a prospectus; – Guaranteeing adherence to the securities regulations that govern the capital market legal services; – Securing timely acquisition of all necessary corporate and regulatory approvals;
Attending the AGM;
- Constructing all necessary corporate documents and agreements in connection with the transaction;
Counsel regarding legal and regulatory affairs;
- Evaluating the Memorandum and Articles of Association of the organization; – Verifying the readiness of the company to be listed on an exchange; – Implementing any necessary legal modifications to the corporate documents of the organization;
Contract review; document drafting; contract negotiation;
- Legal counsel regarding the rating of the product; – Due diligence.