The securities regulator has decided to penalise ICB Securities Trading Company for disbursing margin loans to its clients without any agreement, which is a violation of securities rules.
However, the penalty worth Tk 50 million would be applicable unless the company corrects the irregularities in the clients' accounts and inform the regulator accordingly within September 30 next.
An additional penalty worth Tk 10,000 per day would be applicable after the deadline.
The Bangladesh Securities and Exchange Commission (BSEC) took the decision at its meeting on Sunday.
According to the BSEC information, apart from maintaining more than one consolidated customers' in a listed bank, the company operated more than one individual and joint BO (beneficiary owner's) accounts opened by a single client.
The company also did not maintain the record of its clients' securities properly, said the BSEC officials.
The BSEC meeting also approved a proposal to issue perpetual bonds worth Tk 5.0 billion by Al-Arafa Islami Bank.
The bank will raise Tk 5.0 billion through issuing Mudaraba perpetual bonds to strengthen the company's capital base as part of additional tier-I requirements.
Of the amount, Tk 500 million will be raised through public offer and the remaining units worth Tk 4.5 billion will be issued through private placements.
The offer price of the bond is Tk 5,000 and the minimum subscription amount is Tk 50 million under the private placement. The minimum subscription amount for general investors is Tk 5,000.
MTB Capital is the trustee of the bond.
At the meeting, the BSEC decided to issue a licence of market maker to Be Rich, a TREC holder of Chittagong Stock Exchange (CSE).
It also approved the draft prospectus of GM Equity 1st Mutual Fund, an open-end mutual fund.
The initial size of the fund is Tk 100 million, of which Tk 90 million will be collected through sales of units. The remaining Tk 10 million will be contributed by the asset manager GM Equity. The offer price of the fund is Tk 10 per unit.
