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Post by radovic on Nov 19, 2007 15:27:15 GMT -5
Bulgaria stiffens rules for IPO investors
EMonline
Investors will be allowed to submit bids to their respective broker only to the amount of their bank deposit, equity or mutual fund holdings.
The announcement was made by Bulgaria's financial regulator said last Friday in response to inquiries from local investment intermediaries, asking about the appropriate format in which their clients can certify their solvency regarding IPO bids.
Under Ordinance no.38 on the activities of investment intermediaries which took effect earlier this month, 'an investment intermediary demand from clients, giving orders for the purchase of financial instruments, to provide the cash needed for the payment under the transaction subject of the order, upon giving the order, except if the client attests that he will fulfill his liability for payment'. But since the ordinance did not specify how the client is supposed to certify his solvency regarding the transaction, this option has been unworkable.
Bank guarantees, bank deposit statements and portfolios of equities and mutual fund shares will be considered eligible proof of solvency, Financial Supervision Commission spokesman Milcho Stoimenov told Dnevnik.
The regulator will release an official statement on the issue by the end of the week at the latest.
The change in IPO rules was prompted by the record-breaking oversubscription of the recent IPO of road construction company Trace Group.(Dnevnik)
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Post by rusebg on Nov 20, 2007 5:38:54 GMT -5
Not a bad regulation but a little bit too late.
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