FE Report
The securities regulator Wednesday took a number of decisions including the share netting facility for same security and extension of deadline for provisioning of un-realised loss of merchant banks and stock brokers, officials said.
The decisions were taken at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
At Wednesday's meeting, the BSEC has also given its consent to Tk 2.0 billion Non-convertible Subordinate Bond of Standard Bank and Tk 2.5 billion Mudaraba Subordinate Bond of EXIM Bank.
Both the banks will issue the bonds to fulfill the requirement of Basel-II and boost their capital base as well.
Presently, investors are only allowed to purchase the shares of a company by selling out the shares of another company on the same trading day.
As per the BSEC's Wednesday's decision, investors from now on will get financial adjustment facility, which is called share netting facility, for same security of A, B, G and N category on the same trading day.
The regulator allowed the share netting facility for same security following the proposal made by both the bourses amid poor turnover values observed in the capital markets.
As per another regulatory decision, stock brokers and merchant banks will get time up to December 31, 2015 for the provisioning of un-realised losses counted in their own and clients' portfolios as on December 31, 2014.
In this case, the merchant banks and stock brokers have also been facilitated to complete such provisioning through five installments instead of one.
"The regulator has extended the deadline for provisioning of unrealised losses following the proposals of Bangladesh Merchant Bankers Association (BMBA) and the premier bourse," the BSEC said.
At Wednesday's meeting, the securities regulator fined MP Spinning Mills Tk 1.0 million for breaching securities rules by issuing shares beyond the existing shareholders.
First Securities Services, which worked as the manager to the issue of MP Spinning Mills, will also have to pay a penalty of Tk 0.5 million as it submitted the company's prospectus to the commission subject to due diligence.
Earlier, the regulator scrapped the IPO (initial public offering) proposal of MP Spinning Mills.
The regulator of the capital market Wednesday approved the proposal of raising capital worth over Tk 1.06 billion by Summit Power Limited (SPL). In this case, the SPL will acquire above 203 million shares of Summit Meghnaghat Power Company Limited (SMPCL) at an exchange rate of 1:1.91.
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