The Bangladesh Securities and Exchange Commission on Thursday fined BBS Cables and its associates Tk 8.4 crore in total for market manipulation, insider trading and not disclosing price sensitive information.
The BSEC made the decision at a commission meeting presided over by its chairman Shibli Rubayat Ul Islam, according to a press release issued by the commission.
For violation of securities rules, the commission fined Khadija Tahera Syria, spouse of BBS Cables’ chairman, Tk 3 crore, BBS Cables managing director Abu Noman Howlader Tk 1 crore, Noman’s brother Abu Neaim Howlader Tk 10 lakh, Noman’s brother-in-law Forhad Hossain Tk 30 lakh and director Syed Ferdous Raihan Kirmay Tk 5 lakh.
The BSEC also fined Kabir Ahmed & Associates Tk 25 lakh, Prudential Capital Tk 55 lakh, Abdul Quaium and associates Tk 1.80 crore, Nazrul Islam and associates Tk 25 lakh, Syed Anisur Rahman Tk 25 lakh and Hasan Jamil Tk 35 lakh for the violations.
In addition to the penalty, the watchdog also fined all the directors of BBS Cables Tk 10 lakh each. It has five directors.
A BSEC inquiry committee found that the investors together traded shares of BBS Cables that hiked the share prices of the company abnormally, breaching securities rules.
The commission at the meeting also gave a go-ahead to Mir Akhter Hossain Limited to discover the cut-off price of its shares under the book building method of initial public offering for raising Tk 125 crore from the country’s capital market.
The selling price of the company’s shares would be set through the electronic bidding process with participation of eligible investors.
The company will use the IPO proceeds in business expansion, paying bank loans and meeting the IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2019, the company’s net asset value per share and weighted average earnings per share was Tk 34.71 (with revaluation) and Tk 6.32 respectively.
IDLC Investment Limited is the issue manager of the company’s IPO.
The regulator at the meeting approved a Tk 23.02-crore rights offer proposal of Pragati Life Insurance Limited.
Under the approval, the company would issue one right share against one existing share of the company with a Tk 5 premium that would allow the entity to raise Tk 23.02 crore by floating 1.5 crore shares in the capital market at Tk 15 per share.
The company decided to raise the capital in line with the insurance regulation.
The company would invest the amount in government treasury bonds, and in fixed deposits at banks and financial institutions.
The company reported net asset value per share of Tk 37.29 as on December 31, 2018, according to the rights issue document.
LankaBangla Investment Limited is the issue managers of the rights issue.
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