What are a BO Account and Its Importance?

What are a BO Account and Its Importance?

BO account is an abbreviation for the beneficiary owner's account. It is an account that holds the shares similar to your inbox, holding all your emails. 

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All shares coming from the new IPO and almost all of the secondary market shares are in electronic form. All of the electronic shares owned by the investor are deposited in the BO account.

All NRB can open a BO account through any brokerage houses in DSE by filling up the required forms and submitting the required documents.

Now, when we have got a brief knowledge regarding what is a BO account, let us discuss in detail how to open a BO account in Dhaka.

How to open the BO account in Dhaka?    

One needs a photocopy of passport, resident card, social security card, etc. duly attested.

An FC account with any bank having branch in Bangladesh Duly attested passport size photographs A nominee's signature and photo (duly attested by the investor) on the prescribed form given by the brokerage house.

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Employment certificate, work permit or payslip, tax return document, trade license copy are required as proof of earning the status of the NRB. A nominee should have the POA (Power of Attorney) with authority to sign the trading document on behalf of the NRB in case he is out of the country. The nominee's photo needs to be attested by the NRB along with signature on the prescribed form by the brokerage house.

The POA holder could be any resident of Bangladesh above the certified legal age.

In case the broker is a bank, then a KYC (Know your customer needs to be filled.

Precautions:  

It is advised to read the terms and conditions thoroughly before signing up for the BO account opening form.

In case you are opening your account with any certified brokerage agency, it is ideal for depositing the opening fees within 2-3 business days.

Types of BO account: Basically, there are two kinds of Beneficiary Owners' accounts existing in Bangladesh. One is individual/ joint BO and another being NRB (NonResidential Bangladeshi). While one more account exists but is used less frequently called link BO. If you are a general investor, one needs to open an individual BO account. In Bangladesh, one could open two beneficiary owners' accounts in their lifetime, single/individual account, and others being a joint account.

Conclusion: Opening a BO account comes with a lot of advantages; it helps you trade in shares even when you are abroad. Now, no more hotchpotch due to paper works as you can get every detail of your shares online.

ADDRESS: Mika Securities Limited

Tower Hamlet, 3rd floor, 16 Kemal Ataturk Avenue, Banani, Dhaka-1213, Bangladesh Phone:+880-2-9820564 Mobile: +8801730062188 For Online- +88 01730738355, +880 2 9820561, +880-1730-706742