SEC fines 6 individuals, 4 institutions

The Securities and Exchange Commission yesterday fined six individuals and four institutions Tk 1 lakh each for breaching securities rules.
Also, the stockmarket regulator warned Trust Bank Investment, a merchant bank, and First Security Islami Bank for violating securities laws and decided to cancel the certificate of Mohammad Al Amin, an authorised representative of CMSL Securities.
The market watchdog took the actions at a meeting, presided over by its Chairman Prof M Khairul Hossain, according to a statement.
Of the individuals, who were fined, four are sponsor directors of Social Islami Bank -- Prof MA Mannan, Nargis Mannan, Dr Reshmi Mannan Siddiqi and Dr Galib Mannan.
The two others are: Mohammad Solaiman Chowdhury, a placement holder of S Alam Cold Rolled Steels, and Md Sadek, chairman of Fu-Wang Foods.
The four institutions are: Provati Insurance Company, Fu-Wang Ceramic Industry, Sylnet Securities and Firstlead Securities.
The SEC also approved a bond issuance proposal of Bank Asia, which will raise Tk 110 crore from institutional investors by issuing 'subordinated zero coupon bonds' with six years' maturity period.
The nature of the bond will be unsecured, non-listed and redeemable non-convertible with a 13 percent yield to the maturity period.
The bank will use the proceedings to meet the requirements of Basel II, raise Tier 2 capital and maintain the current account.
The face value of each unit of the bond will be Tk 5,000, while Industrial and Infrastructure Development Finance Company (IIDFC) will act as the issue manager.
The SEC also decided to publish two separate gazette notifications on the amendments to 'stock dealer, stockbroker and authorised representative rules of 2000' and 'capital issue rules of 2001'.
The commission approved the appointment of Md Saiful Islam, president of Institute of Chartered Accountants of Bangladesh, as the nominated director of Dhaka Stock Exchange. He will replace Parvin Mahmud.