NRB investors in capital market in the soup
PHOTO: bloomberg
NRB investors of IPOs are being short-changed at every step. If allotment is not made, they have to move heaven and earth to get refunds: 1. Banks charge heavily for ForEx transactions. 2. Companies neither acknowledge applications nor send the money receipt to the applicant. 3. After lottery, they sit on the FE refund warrants. 4. Without money receipt, refund warrants are neither delivered by the couriers if they come at all. 5. Even after personally collecting the refund warrants and depositing in the bank, it takes months to encash, eg: 1) MI Cement IPO was held in January 2011, refund warrants were collected from their Motijheel Office on 30 March and deposited in the bank. Proceeds are still to be credited 7 months later. 2) Deshbondhu Polymer deposited on 31 March, encashed on 21 June. 3) Salvo Chemical deposited on 31 March, encashed on 31 May. 4) Barakatullah Electro Dynamic deposited on 12 Sept, not yet cashed. Why can't NRB refunds be credited after lottery to nominated FOREX accounts directly just like the RBs? No wonder NRB investors are leaving the stock market.
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