Bangladesh Securities and Exchange Commission fined Aman Cotton Fibres Limited, a yarn making company, and two of its issue managers Tk 15 lakh for providing forged documents with the applications for approval of initial public offering. Aman Cotton, which recently applied to the BSEC to go for IPO for raising Tk 100 crore from the investors, was fined Tk 5 lakh while issue managers LankaBangla Investments Limited and Unicap Investments Limited were fined Tk 5 lakh each.
The commission at a meeting with its chairman M Khairul Hossain took the decision.
The market regulator found that Aman Cotton provided forged land mutation, tax payment and other documents with the BSEC with its IPO application.
The two issue managers for the IPO proceedings also issued due diligence certificates to the company without verifying the documents properly, said a BSEC press release.
By fabricating the IPO documents, Aman Cotton violated section 19 of the Securities and Exchange Commission (Public Issue) Rules and section 18 of Securities and Exchange Ordinance-1969, the release said.
The company wanted to offload 2.50 crore shares with an offer price of Tk 40 including Tk 30 premium on each share.
-With New Age input
