The securities regulator has imposed an aggregate amount of penalty worth Tk84 million on a listed company, a brokerage firm and some individuals for misuse of IPO fund and manipulating share price.
The decision of imposing penalty was taken on Thursday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
At Thursday's meeting, the securities regulator also approved the IPO (initial public offering) proposal of Associated Oxygen under the fixed price method.
The securities regulator has imposed a penalty worth 35 million on the managing director and five directors of Kattali Textile for misusing the company's IPO fund.
The company also submitted 'false information and fake bank statement'on the utilisation of IPO fund.
"Without ensuring proper utilisation of the IPO proceeds, the company submitted false report for February, 2019. The company also submitted fake bank statement in favour of its utilisation of IPO proceeds," said the BSEC officials.
They said the managing director and other five directors, other than independent and nominated ones, have been fined for breaching the section 18 of the Securities and Exchange Ordinance, 1969 through misuse of the fund.
At Thursday's meeting, the securities regulator also imposed another aggregate amount of penalty worth Tk 49 million on a brokerage firm and three individuals and their respective associates for manipulating the share price of Quasem Drycell during October 29, 2015 to January 5, 2016.
According to BSEC information, the share price of Quasem Drycell rose 89.22 per cent during the said time period due to 'unusual' transactions conducted by three companies and two individuals.
For the manipulating the company's share price, Narayan Chandra Paul and associates will have to pay a penalty worth Tk 30 million, Sulaiman Rubel and associates Tk 1.0 million, Prime Islami Securities Tk 15 million and Md. Mahmuduzzaman and Md. Mahibul Islam Tk 3.0 million.
At Thursday's meeting, the securities regulator also approved the IPO proposal of Associated Oxygen which will raise a capital worth Tk 150 million under the fixed price method.
The company will utilise the IPO fund for purchasing machineries, repayment of bank loans, among others.
The company's weighted average EPS (earnings per share) and NAV (net asset value) without revaluation are Tk 1.51 and Tk 17.37 respectively for the year ended on June 30, 2019.
BD Finance Capital Holdings is the issue manager of the Associated Oxygen.
The securities regulator has also allowed Express Insurance to conduct IPO lottery through licensed digital platform along with the existing system.
According to BSEC decision, from now on all IPO lotteries will be held through licensed digital platforms under the supervision of Central Depository Bangladesh Limited (CDBL).
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