Stockbroker fined Tk 50 lakh for breaching rules
The stockmarket regulator yesterday fined Alliance Securities and Management Tk 50 lakh for violating securities rules.
The stockbroker provided excess share credit to its directors and their relatives by breaching margin rules, Bangladesh Securities and Exchange Commission said in a statement.
BSEC asked the stockbroker to adjust the excess share credit with interest within February 19, and then submit a compliance report to the commission.
Until the realisation of the credit, Alliance cannot offer any dividend, honorarium or further share credit to its directors or withdraw any money from its retained earnings or reserve fund, except daily operational expenses.
The BSEC also fined another stockbroker, Associated Capital Securities, Tk 5 lakh for breaching rules.
In another development, the regulator approved Saif Powertec's application to raise Tk 174.44 crore through a rights share issue.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount compared to the market price.
The container handling operator, which was listed in 2014, will issue 11.63 crore rights shares of Tk 10 with a premium of Tk 5 per share.
One rights share will be offered for one existing share.
The raised funds will be used for bank loan repayment and business expansion. Banco Finance and Investment will be the issue manager.
Saif Powertec's earnings per share stood at Tk 4.38 as per last year's audited financial statement with a net asset value per share of Tk 23.22.
On the Dhaka Stock Exchange yesterday, each Saif share traded between Tk 56.6 and Tk 58.1, before closing at Tk 57.2.
BSEC also allowed Social Islami Bank to raise Tk 400 crore by issuing mudaraba subordinated bonds to meet its tier-II capital requirement. The bonds will have a maturity period of six years.
The face value of the bond, which can only be issued to financial institutions and high net worth individual investors through private placement, will be Tk 5 lakh per unit.
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