Are bankers to an issue of capital justified in levying a charge on constituents for the latter's share application submitted through them. It is believe that the issuer of capital duly compensated the bankers to the issue for their services relating to collection of applications and subscription money. Accordingly, an additional charge should not be made from constituents.
The writer has had a contrary experience. He applied recently for 100 shares of Habib Bank, and 500 shares of Dost Steel; in both cases his account with banker to the issue concerned was debited with the sum of Rs 10/- each. Since no such levy used to be made by banks on share applications in past, it is doubtful if it is an authorised levy. Since the matter concerns a scheduled bank, may the State Bank of Pakistan please clarify.