Frequently Asked Questions (F A Q) about Portfolio Management

Who can open an investment account?
Any adult citizen of Bangladesh, corporation and statutory body can open account with BRAC EPL.

Who will take the investment decision?
As a Client, you will have the absolute power to take your own investment decisions. However, your investments shall remain within the list of approved securities which your Portfolio Manager will regularly update after thorough and independent analysis.

How Can I Place the Order?
You can place your orders through physically submitting the order slip to our Customer desks, or by telephone, e-mail or other electronic devices.

Can I cancel or modify my orders?
Yes, you can cancel or modify your orders subjects to non-execution of the said orders.

How can I know the status of my portfolio?
You will receive your portfolio status report daily. However, you can have the report any time on demand.

What is Margin Call?
In order to protect your equity position, your portfolio Manger calls additional margin deposit in case your equity falls below a certain percentage (the percentage changes from time to time) of your debt obligation to maintain the stipulated debt to equity ratio. Such call is commonly known as “Margin Call”.

What is Trigger Sale?
Trigger is a right to your Portfolio Manger to execute sale of appropriate portion of your portfolio in case your fail to provide additional deposit as required under margin call within three (3) business days or if your equity falls further below a certain percentage (the percentage changes from time to time) of your debt obligation. Trigger Sale is executed to reduce your debt burden.

How my equity and purchasing power is calculated?
Your equity is calculated by deducting your debt amount form your portfolio value, and the purchasing power is derived at certain times of your equity. The magnitude of the multiplier changes depending on the capital market circumstances.

Can I place additional deposits?
Yes, you can make additional deposits at any time into your account. Additional deposits will increase your equity position and purchasing power.

Shall I be able to withdraw cash from my account?
Yes, you will be able to withdraw cash to the extent at which, after such withdrawal, your equity remains at 100% of your debt obligation, also, the cash withdrawal shall not drive your equity position below the minimum investment amount.

Shall I be able to withdraw/transfer physical securities from my account?
No, you will not be able to do so; All your securities will be under lien with your Portfolio Manager.

Can I trade in both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE)?
Yes, you can execute trade in both DSE and CSE, provided that your preferred broker is a member of both DSE and CSE.

How may trades are allocated?
Each of your trades will be distinctly recorded and accounted for. Therefore, no averaging policy will be applied for allocating trades.

Can I deposit physical securities or transfer dematerialized securities from my other BO Account?
No, you will not be able to do such transactions.

Can I attend the AGM/EGM of the companies and cast vote?
No, you will not be able to attend the AGM/EGM of the companies, However, your Portfolio Manger will attend the AGM/EGM on your behalf and cast vote in the best interest of the clients.

Frequently Asked Questions (F A Q) about BRAC EPL STOCK BROKERAGE

1. What are the papers and documents needed to open an account?

• A complete set of account opening form

• Three copy of passport size photograph

• Copy of bank statement

• National ID card/Passport/word commissioner certificate/Employee ID

• One copy of photograph of nominee/authorized/POA

Bangladeshi Institutions

• A complete set of account opening form
• Copy of Memorandum and Articles of Associations
• Copy of trade license (if any)
• Board regulations
• Three copy of passport size photograph of authorized  person

Foreign Company/Institutions

• A complete set of account opening form
• Company Memorandum and Articles of Associations
• Copy of trade license
• Board regulations
• Three copy of passport size photograph of authorized  person

2.    What is your rate of commission?

• Our rate of commission is not only competitive in the market but also it is lower from some rivals. We charge 0.40 percent to domestic’s retailers.

3.    How many days you will take to open an account?

• Three working days

4.    After how many days do you give cheque of sold shares?

• You will be delivered the check at the very next day from the check requisition day.

5.    Is there any way to buy all the shares?

• You can buy all shares except some of Z category paper based shares.

6.    After how many days “Z” category shares can be sold?

• After nine working days from the purchased day

7.    If I deposit cheque today could I get purchase power instantly?

• Yes you can have so

8.    After how many days cheque are delivered?

• The delivery the check will be on the next from the check requisition day irrespective of matured or immature balance. But the date on the check will be according to the maturity of the balance.

9.    I like to invest share in capital market. Would you kindly tell me how I can be an investor in share market?

• It is just four steps to be an investor in the capital market

•    Open BO Account with BRAC  EPL Stock Brokerage
•    Make Initial deposit
•    Give buy order to execute
•    Be an investor

10.    What is a B.O account and how to open it (local & NRB)?

• BO Account stands for Beneficiary Owners Account. This is the account that holdsyour shares like an inbox holding all your emails. All shares from new IPO’s and most of secondary market shares are in electronic form and a BO account, owned by the investor, hold the electronic shares.

To know about how to open a BO accounts please run through the OPENING AN ACCOUNT field.

11.    To what degree you can assist us becoming a profitable investor?

• We will help you the way we wanted to be helped. We will extend our support to the extent outlined by the security laws.

12.    What about your service charge yearly?

• Right now our service charge is totally free of cost.

13.    How much can I be assured taking BRAC EPL assistance investing in share market?

• You can get the full assurance in taking assistance in investing capital market because we

•    Have a versatile management team having the longest time market exposure
•    Ensure the best quality and professionalism in each delivery of service
•    Have well trained traders recruited from the top business schools
•    Have wide range of branches spreading throughout the country
•    Produce a unique blending of equity researchers of both fundamental and technical
•    Utilize state of the art technology 

14.    Can we invest both in DSE & CSE?

• Yes, we have the membership of both the DSE and CSE.

15.    Do NRB(s) can invest in share market through BRAC EPL Stock Brokerage Ltd?

• Yes, we have the strong setup in channeling NRBs funds into our capital market. By investing in the capital market the NRBs can get the following benefits:

•    10% of all issued IPO are reserved for NRB – may be increased very soon for at least very large issues
•    No Capital Gains tax
•    Minimum 60% of ICB NRB Mutual Funds are reserved for NRB’s (Last one advertised on 11th April, 2008)
•    Can also trade in the secondary capital market while abroad either by nominee or personally by phone calls, fax, email etc. – remember, the buy sale order will have to be faxed in within 24 hours in account is operated personally.

16.    What is primary share and secondary share?

• Shares in a stock offering in which proceeds go to the issuing company. Primary shares have not been previously traded and are not included in shares outstanding prior to the offering.
• Shares in a stock offering in which proceeds go to other investors rather than the issuing company. Secondary shares have been previously traded and will not result in an increase shares outstanding.

17.    How much does my share secured through your company?

• Shares will be deposited to your BO account after purchase or IPO. But in case of sale, shares will be credited after getting pay in confirmation from you.

18.    Isn’t your charge high enough?

• No. Our BO account opening fee is totally free of cost. We are charging 0.4 percent as brokerage commission which is very much competitive in the market. Not only have that in some case it is lower in compared with rivals.

19.    What about withdrawal of shares?

• You can withdraw your deposited securities by following certain proceedings.

20.    Is it necessary to put nominee’s information to open an account?

• No. It is optional. However, a nominee for inheritance/transmission, in case something happens to investor, is wised to be assigned.

21.    What does category A, B, G, N & Z share mean?   

• A Category:  Companies which are regular in holding the current annual general  and have declared dividend at the rate of ten percent or more  in the last English calendar year.
• B Category:  Companies which are regular in holding the annual general meetings but have failed to declare dividend at least at the rate of ten percent in the last English calendar year.
• N Category:  All newly listed companies except Greenfield companies will be placed in this category and their settlement system would be like B-category companies.
• Z Category:  Companies which have failed to hold the current annual general meetings or have failed to declare any dividend or which are not in operation continuously for more than six months or whose accumulated loss after adjustment of revenue reserve, if any, is negative and exceeded its paid up capital.