SUMMIT’S MERGER FIASCO

BSEC to warn Summit Power, top bosses of DSE, CSE

Staff Correspondent | Published: 22:51, Mar 15,2017

 
 

The Bangladesh Securities and Exchange Commission on Wednesday decided to warn Summit Power Ltd and four top officials each of Dhaka and Chittagong bourses over the fiasco surrounding the merger of SPL with three of its associates.
The BSEC in a meeting took the decision to warn managing director, chief regulatory officer, head of listing and head of market development of both the bourses, said a BSEC press release.
The bourses’ officials breached different securities rules along with a provision of the Demutualisation Act, 2013 in dealing with merger of SPL with three of its associates including Summit Purbanchol Power Company Limited, a listed company.
Besides, the commission will ask DSE board to become more cautious in conducting its responsibilities in future, it said.
The capital market regulator also decided to warn Summit Power for the entity’s noncompliance with a High Court verdict related to the merger in August, 2016.
BSEC chairman M Khairul Hossain led the commission meeting.
The BSEC decision was taken based on an investigation report of the regulator on Summit’s merger issue.
On August 24 last year, the Dhaka Stock Exchange and the Chittagong Stock Exchange delisted SPPCL following a letter from the company based on its board decision to merge with the SPL although the company did not apply to the commission to increase the paid-up capital.
The market regulator in the next day came down heavily on the bourses mentioning that the bourse had failed to follow due procedure in delisting of SPPCL.
The commission at the meeting approved Tk 563.82 crore rights offer of IFIC Bank that will allow the
bank to strengthen its capital base as per the requirement of the central bank.
IFIC bank will issue one rights share against one existing share of the entity.
The issue price of IFIC’s rights shares has been set at Tk 10 each.
Besides, the regulator at the meeting also approved winding-up proposal of ICB AMCL First NRB Mutual Fund as the 10-year tenure of the fund will expire on March 20.
Draft prospectus of a closed-end mutual fund, Credence First Growth Fund, with its initial target size of Tk 20 crore got regulatory approval at the meeting.
Credence Asset Management Limited as the sponsor of the fund will provide Tk 2 crore, while the rest Tk 18 crore will be collected from investors.
Investment Corporation of Bangladesh will act as the trustee and custodian of the fund. 

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