Welcome to Business Outlook
Related Articles
The Bangladesh Securities and Exchange Commission on Sunday decided that it would fine state-run ICB Securities Trading Company Limited, a subsidiary of the Investment Corporation of Bangladesh, Tk 5 crore if the company fails to address a number of rule violations by September 30.
The BSEC made the decision at a commission meeting presided over by its chairman Shibli Rubayat-Ul-Islam, a BSEC press release said.
The BSEC found that the brokerage house operated more than one consolidated customer accounts at the same bank and more than one individual and joint beneficiary owners account for its single customer.
In addition, the brokerage house provided margin loans to its customers in cash accounts despite the clients do not have margin loan agreement with the company.
The firm did not keep records of securities of its customers properly, breaching securities rules, the BSEC press release said.
The commission asked ICB Securities to address the rule violations and other irregularities by September 30.
If the house fails to do so, it must pay Tk 5 crore as penalty, it said.
For the continuation of such violations, the brokerage house will have to pay Tk 10,000 each day as penalty.
The BSEC at the meeting also decided to provide first market maker licence to Be Rich Limited, a brokerage house of the Chittagong Stock Exchange, under the BSEC (Market Maker) Rules, 2017.
The BSEC at the meeting also allowed Al-Arafah Islami Bank Limited to float contingent-convertible floating rate Mudaraba perpetual bond worth Tk 500 crore. Of which the fund, Tk 50 crore would be raised through a public offer.
The bank would raise Tk 450 crore through private placement and it would be issued in favour of banks, financial institutions, mutual funds, insurance companies, corporate institutions and other eligible investors.
The face value of the bond is Tk 5,000 each.
The minimum subscription for placement holders is Tk 5 crore and for general public under public offer is Tk 5,000.
Al-Arafah Islami Bank would utilise the proceeds of the bond to strengthen the capital base of additional tier-1.
MTB Capital Limited acts as trustee while Prime Bank Investment Limited and UCB Investment Limited are arranger and issue manager of Al-Arafah Islami Bank bond. Islami Bank Capital Mangement Limited is the underwriter of the bond.
(FE)
