A to Z of BO Account

Over decades investing in the stock market with patience is generally the best way to build wealth. A worldwide renowned and successful investor Warren Buffett says, ‘’The stock market is a device to transfer money from the impatient to the patient’’. The positive thing is many people want to enter the stock market, but the matter of sorrow is they do not know where to start. So this blog is for those who want to start investing, buy-sell shares and thinking of trading in the stock market.

What is a BO Account

To enter into Bangladesh Stock Market, the first step to start is to open a BO account. Now you may ask what is BO account, why I need that, and how to open it.

Well then first you need to know the full form of BO account, which is Beneficiary Owners Account. A bank account and a BO account are quite similar. Simply a bank account is used to hold your money, similarly, a BO account is used to hold your financial securities like equity, bond, mutual fund etc. Substantially, investors must have a BO account for the subscription to Initial Public Offering (IPO) shares and to trade shares on the secondary market.

A BO account allows an account holder to monitor his/her account like- investment in shares and securities, daily trades, realized and unrealized gain/loss, etc.

Now you know what is BO account. So, we can go to the next part that how many types of BO accounts are available in Bangladesh.

Types of BO Account

Commonly there are 4 types of BO accounts available in Bangladesh-

When a Bangladeshi Citizen who is not a minor and unsound mind individually opens a BO account with proper documents is known as Individual BO Account.

Joint BO Account is a type of BO account where two adult person agrees to open a BO account with proper documents.

Those Bangladeshi citizens living abroad either as a foreign country’s permanent resident or with a valid status is known as NRB and eligible to open NRB (Non-Residential Bangladesh) BO Account.

When a registered organization (Trade License/Memorandum of Association) in Bangladesh opens a BO, that is known as Institutional/Company BO Account.

Apart from that, there is also another account which is used to transfer your existing BO account from one broker house to another broker house. That is known as Linked BO.

How to open a BO Account

The first step of opening a BO account is selecting a brokerage house. After selecting, you will have to visit one of their offices for filling up forms, provide the required documents, and pay the account opening charges. After then you will receive your account number within 1-2 working days.

Documents needed to open a BO Account

To open a BO account, you will need documents that are specifically described below-

Individual Account

• Two Copy of passport size photograph of the account holder
• National ID card/Passport of account holder and nominee
• One copy of photograph of nominee/authorized/ Power of Attorney (POA) (if needed)
• Bank Certificate/Photocopy of MICR Cheque Leaf

Joint Account

• Two Copy of passport size photograph of the first account holder and the second account holder each
• National ID card/Passport of first & second account holder and nominee
• One copy of photograph of nominee/authorized/POA (if needed)
• Bank Certificate/Photocopy of MICR Cheque Leaf

Institutional/Company Account

• Certificate of company’s bank account
• Copy of Memorandum and Articles of Associations
• Copy of certificate of Incorporations
• Copy of trade license (if any)
• Board resolutions
• Two copy of passport size photograph and NID card photocopy of authorized persons

NRB Account

• Photocopy of passport/social security card/resident card etc. attested (if you are living in a foreign country then attestation needs to be done by the respective Bangladesh Embassy or High Commission)
• An FC account with any bank with branch in Bangladesh
• Two copy passport size photographs of the account holder
• Nominee – beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Employment certificate / trade license copy / work permit or Pay slip / tax return document as a proof of earning status of the NRB
• A nominated person with POA who will sign trading documents on behalf of the NRB while he is abroad. His/her photo (attested by the NRB), NID and signature in a prescribed form by the brokerage house (POA can be any adult person of legal age residing in Bangladesh)

BO account can be opened both physically and online. Last year Bangladesh Securities and Exchange Commission (BSEC) inaugurated the digital BO account opening system aim to increase the participation of investors as well as fresh investments in the capital market. BDT 450 will be charged to investors for opening a BO account with a brokerage house. Investors will also be able to pay BO account fees through online payment systems.

To open BO accounts online:

Investors need to visit Central Depository Bangladesh Ltd (CDBL) website. Then the first step would be select the ‘’depository participant’’ option and will need an email along with a valid mobile number to get an OTP to log into the website. The investor must select a brokerage house from the system. After then they need to fill necessary information including NID card numbers, banking information, bank cheque copy, passport size photograph, scanned copy of signature etc. and will receive a confirmation message on his/her email and mobile number if the information is correct. After receiving BO fee, the respective brokerage house will upload the account to the CDBL system.

How to open online BO Account at Royal Capital

One of the leading brokerage house in the country named Royal Capital Limited with 15 branches and 10 Digital Booth also offers the investors to open BO account both physically and online. By following 4 simple steps an investor can open online BO to Royal Capital-

STEP# 1: Registration Panel

o Click on Open an Account
o Registration/user log in panel is appeared
o Type your first and last name (same as NID or birth certificate or student ID)
o Type your valid email address
o Type your registered mobile number
o Click continue to registration button
o An email will be sent to your given email address if registration is successful
o Please open your email and use given user id and password to finish the online BO registration process.

STEP# 2: Online BO Form Page

o If registration is successful, online BO form is appeared
o Fill up the form from selecting client’s category individual or joint
o Fill up first account holder’s/ joint account holder’s/bank account/power of attorney’s (authorize)/ nominee’s details information
o Filling up nominee’s information is not mandatory
o Guardian’s information is needed if nominee is a minor
o Nominee’s information can be added maximum of two
o Click on the save and continue button to appear next page

STEP# 3: Attachment Panel

o Attachment panel is appeared
o Please upload client’s recent picture, scan copy of NID, (both side) or passport or driving license
o Fill up first account holder’s/ joint account holder’s/bank account/ power of attorney’s (authorize)/ nominee’s details information
o Please upload scan copy of nominee’s recent picture, NID (both side) or passport or driving license
o Please upload scan copy of power of attorney’s recent picture, NID (both side) or passport or driving license
o Please upload client’s/account holder’s valid signature
o Click on the save and continue button to appear next page

STEP# 4: Payment Panel

o Payment can be made through Online
o You will get a confirmation SMS if payment is successful

Conclusion

Capital market of a country plays a significant role for the economic growth. So, it is important to understand its primary things like BO account both for the entrepreneurs/companies as well as for individual investors.