September 25, 2020, 10:17 pm


Abu Taher Bappa

Published:
2020-09-04 10:48:28 BdST

BSEC fines three stockbrokers for violating rules


The stock market regulator has fined three stockbrokers and the chairman and a director of Fareast Finance & Investment for breaching securities rules.

The securities regulator has also banned RN Spinning Mill's statutory auditor Atik Khaled Chowdhury, Chartered Accountants and Engagement Partners, from auditing any capital-market related companies for three years for violating securities rules.

Besides, the Bangladesh Securities and Exchange Commission (BSEC) has approved two bonds in favour of Al-Arafah Islami Bank Ltd and PRAN Agro Ltd.

The BSEC made the decisions at a meeting held at its office in the city on Thursday, with its Chairman Shibli Rubayat Ul Islam in the chair.

The stock market regulator fined Modern Securities Tk 0.5 million (Tk 5 lac), Synet Securities Tk 0.2 million (Tk 2 lac) and MAH Securities Tk 0.1 million (Tk 1 lac) for breaching securities rules.

The Modern Securities has breached securities rules by giving margin loans to its officials and family members and opening BO accounts to its authorized dealer. Fund shortage was also detected in its customers' consolidated accounts.

The BSEC fined Synet Securities Tk 0.2 million for violating securities rules. It was found that the company lent money to the company's officials, gave margin loans for trading junk stocks and 'N' category stocks. Fund shortage was also detected in its customers' consolidated accounts.

Based on the investigation conducted by the Dhaka Stock Exchange in 2018, the BSEC slapped a penalty of Tk 0.1 million on MAH Securities for violating securities rules.

The securities regulator has also fined MA Khaleque, director and chairman of Fareast Finance and Investment, Tk 1.0 million (10 lac) and director Rubayat Khaled Tk 0.5 million (Tk 5 lac) as they sold shares during the prohibitory period.

The BSEC also decided to freeze their BO accounts until they deposit the fines.

At Thursday's meeting, the BSEC approved Al-Arafah Islami Bank's Tk 5.0 billion non-convertible, floating rate, mudaraba subordinated bond tier-2 capital bond. The tenure of the bond is seven years.

The bond will strengthen the capital base of the company. Per unit price of the bond is Tk 500,000.

The bond's units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net worth individuals, foreign investors and non-resident Bangladeshis "other than existing" shareholders of the company through private placements in cash consideration.

Green Delta Insurance Ltd is acting as the trustee and Prime Bank Investment Ltd as mandated lead arranger for the bond.

Besides, the BSEC approved the PRAN Agro Ltd.'s fully redeemable non-convert unsecured corporate guaranteed bond worth Tk 2.10 billion.

Per unit price of the bond is Tk 1.0 million. The tenure of the bond is seven years. The bond's coupon rate is 8.0 percent to 10 percent.

At least 80 percent unit of the bond will be issued to the MetLife Bangladesh. And the rest will be issued to insurance companies, banks, financial institutions, and eligible investors through private placement.

The company will use the raised funds for infrastructure development and purchasing machinery.

Green Delta Capital is acting as the trustee and River stone Capital Ltd as the lead arranger for the bond.

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