Woes of unsuccessful IPO candidates
Of late various problems are being faced by individual or small investors in obtaining or getting information about refund of money to unsuccessful IPO applications, viz.
1.Applications by Resident Bangladeshis (RBs) are relatively simple. Money is paid by cash or cheque to designated banks which issue a provisional receipt. After the lottery, refunds/allotments to applicants are distributed on a designated day by the organisation against the bank receipt. Unclaimed refunds/allotments are then sent by courier to the designated addresses and delivered against the bank receipt. This works fine.
Recently, refunds are being deposited directly to the bank accounts named in the IPO application form, which is even more efficient as it saves the applicant a long, tiresome and expensive journey to Motijheel or the company office usually located there.
Problem: a) Refunds/allotments sent by couriers are delivered at all times of the day, when the applicant may not be at home. b) Sometimes direct refunds to banks are delayed and it is also difficult to get information from some banks as to how much has been credited and from whom. Some banks even charge for this service. c) Allotment letters remain with the offices till collected. So if the bank is not cooperative, one never knows the position of refund/allotment.
2.Applications in Foreign Exchange by Non-Resident Bangladeshis (NRBs) are more cumbersome and complex. The exchange rate has to be found, foreign exchange draft made out and the applications with passport copies sent by courier to the company head office that may be in another city. The company is supposed to issue a money receipt but it never does so. I have never received a single money receipt against the NRB applications I have made this year. Problem: a) The applicant does not know if the application was received in time or not for at least 5-6 weeks. b) If the NRB refund/allotment is not collected on the designated day, the real problem arises. These are sent by courier and are to be delivered only against “bank receipts” but most investors only have a courier receipt as the relative money receipt is never issued. Why then does the company instruct the couriers to deliver the refund/allotments against money receipts (or bank receipts as the couriers call it), when they know that these have not been issued? c) Even when FC drafts are received as refund and deposited in respective banks, the proceeds take months to be credited.
I am yet to receive refund of Grameen1-Sch 2, Summit Port, Takaful Ins(partly), Standard Ins and Northern Gen Insurance. Would it not be more efficient to refund on-line to respective bank accounts in FC, just like RB?
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