BMBA is an association of the Merchant Bankers operating in Bangladesh. It started its journey sometime in 1997 with the formation an executive committee with Prof. Dr. Mohammad Musa as the first convener of the association. At that time only about 15 institutions were operating as merchant banks without even license from any authority to operate as such. The main functions these institutions had been performing primarily included (i) underwriting IPOs and (ii) managing new issues. Not that many new issues were coming to the market and the size of IPOs was very small. Therefore, these institutions by and large had been struggling to remain afloat. The merchant banking industry was at that time in its infancy. The industry participants were searching for proper direction. The first thing they needed was obtain license from the Bangladesh Securities and Exchange Commission (formerly SEC) to legally operate as merchant banks. The BSEC was in the stage of formulating guidelines under which the licenses would be issued to companies allowing them to operate as merchant banks. The BSEC had also been working hard to reformulate issue management rules, underwriting rules and the right share issue rules. Merchant bankers felt that they must act as catalyst in shaping these rules working with the BSEC. Hence there arose the need for a collective representation. Out of this need, BMBA was created.
The owners and key management personnel of a few merchant bankers felt the need for creating the association. Initially all the institutions that had been providing and had expressly positioned to provide either issue management or underwriting services or both were contacted. A number of meetings of the representatives of these institutions were arranged. In those meetings, the representatives strongly felt that merchant banks should be working from a common platform to enhance its clout with the regulatory authorities in shaping the regulatory environment in which they would be operating. They therefore agreed to form an association. The end result of this agreement is the creation of BMBA.
Following the decision, Bangladesh Merchant Bankers Association was formed under the companies’ Act 1994 and registered with the Registrar of Joint Stock Companies on 9th November’ 2004. The Association is run by an Executive Committee consisting of 11 members headed by the President. The total number of members stands now at 65.
The Bangladesh Merchant Bankers Association has been ceaselessly working for the development of Capital Market and playing a very constructive role for its members since its inception. Now, BMBA is a member of the Federation of the Bangladesh Chamber of Commerce & Industry (FBCCI) and has gained considerable clout for its contribution in the Capital Market.