Fareast Stocks’ board to be restructured

The Bangladesh Securities and Exchange Commission (BSEC) has decided to restructure the board of directors of Fareast Stocks and Bonds due to the brokerage firm's failure to maintain rules and regulations.

The stock market regulator took this decision at a commission meeting held yesterday at its headquarters with BSEC Chairman Professor Shibli Rubayat Ul Islam in chair.

Due to its failure to follow directives, maintain discipline in the capital market, and protect the investors' interests, the BSEC has decided to restructure the firm's board of directors, according to a press release.

Meanwhile, the BSEC approved Exim Bank's Mudaraba subordinated bond worth Tk 500 crore at the commission meeting as well.

The characteristics of the bond would be non-convertible, unsecured, and floating rate.

Its coupon rate would be 2 per cent higher than that of the six months' average profits of fixed deposits of shariah-based banks.

The bond will be issued to financial institutions, mutual funds, insurers, rural banks, organisations, trustees, and eligible investors through private placement.

With the bond proceeds, Exim Bank will strengthen its Tier-2 capital base. The face value of each unit is Tk 1 crore.

The Sena Kalyan Insurance Company is its trustee and Standard Chartered Bank the arranger.

The BSEC also decided to return to normal trading times from today. As banking hours have been extended, the BSEC decided to operate the stock market from 10:00am until 2:30pm.