Bangladesh Securities and Exchange Commission on Tuesday fined a company and three brokerage firms Tk 18 lakh for violating various securities laws.
The decision was taken in a regular meeting of the commission on the day presided over by BSEC chairman M Khairul Hossain. The BSEC fined MP Spinning Mills Tk 10 lakh as the company distributed its shares, which BSEC approved for capital raising, among the outside shareholders rather than the existing shareholders which is a violation of Issue of Capital Rules.
BSEC also fined First Securities Services Limited Tk 5 lakh for providing due diligence to MP Spinning whose initial public offering was earlier rejected by the commission.
The securities regulator also fined MAH Securities Ltd Tk 1 lakh and EBL Securities Tk 2 lakh for violating margin loan rules as the brokers provided margin loan in cash account.
The BSEC in the same meeting approved for Standard Bank to raise Tk 200 crore by issuing non-convertible subordinate bonds which the bank will use to meet the Tier-2 capital requirement of the Basel-II.
The bond is fully redeemable in six years with interest rate of 12 per cent and intuitional investors and high net worth individual investors can buy the bonds through private placement.
Per unit price of the bond is Tk 1 lakh and ICB Capital Management is the trustee of the bond.
The BSEC approved EXIM Bank to raise Tk 250 crore by issuing non-convertible Mudaraba subordinate bonds which the bank will use to meet the Tier-2 capital requirement under Basel-II.
The bond is fully redeemable in 7 years and the profit rate of the bond is 6 month’s Mudaraba term deposit provisional profit plus additional 2.50 per cent annually.
Per unit price of the bond is Tk 10 lakh and Green Delta Insurance is the trustee of the bond.
-With New Age input
