The Bangladesh Securities and Exchange Commission on Tuesday rejected proposals of four companies to issue rights shares as the investors got insufficient time to judge the performance of entities which were listed with the major bourse in last one year. The companies, Bangladesh Building Systems, Central Pharmaceuticals, Mozaffar Hossain Spinning Mills and JMI Syringes and Medical Devices, were listed with the Dhaka Stock Exchange between 2013 and 2014.
The BSEC made the decision at a meeting, led by its chairman M Khairul Hossain, said a press release.
It said that the four companies had not taken enough time to offer rights shares after their listing. ‘If sufficient time was taken it would have helped investors to know about the companies and take appropriate decisions in this regard, it said.
‘The commission denied considering rights offers of the companies in a bid to protect investors’ interest,’ it said.
Following severe criticism from stakeholders, the commission on October 29 imposed two-year bar on listed entities from offering rights shares after getting approval for their initial public offerings.
Besides, the commission also imposed a three financial-year bar on companies which got re-listed with the stock exchanges from the over-the-counter market to propose rights shares.
Bangladesh Building Systems, Central Pharmaceuticals in September offered two rights shares against five existing shares after getting enlisted with the Dhaka and Chittagong stock exchanges last year, while Mozaffar Hossain Spinning Mills in September offered three rights shares against existing two shares after enlistment with the bourses this year.
In July 2014, JMI Syringes & Medical Devices offered two rights shares against one existing share after getting listed with the DSE last year. The company was listed with the Chittagong Stock Exchange in 2003.
The capital market regulator on Tuesday also fined SR Capital, a Chittagong Stock Exchange broker, Tk 5 lakh for short-selling of 2,68,700 shares of Aftab Auto, United Airways and Alltex Industries violating CSE (short-sale) Regulations, 2005, the BSEC release said.
-With New Age input
