BSEC slaps penalties on Vanguard Asset, BGIC, Regent Textile
The decision was made at a commission meeting held on 22 July at its headquarters, chaired by BSEC Chairman Khondoker Rashed Maksud
The Bangladesh Securities and Exchange Commission (BSEC) has imposed significant penalties on Vanguard Asset Management, Bangladesh General Insurance Company (BGIC), Regent Textile Mills, and a sponsor of Southeast Bank for breaching securities regulations.
The decision was made at a commission meeting held on 22 July at its headquarters, chaired by BSEC Chairman Khondoker Rashed Maksud, according to a press release issued today (23 July).
The commission stated that Vanguard Asset Management, an asset manager, violated securities laws by investing Tk4 crore in AFC Health Ltd in 2017. The firm has been directed to recover Tk9 crore within 30 days.
Keep updated, follow The Business Standard's Google news channel
If it fails to do so, a penalty of Tk10 crore will be imposed, the BSEC warned in the press release.
Meanwhile, the trustee of Vanguard AML BD Finance Mutual Fund One – Bangladesh General Insurance Company Limited (BGIC) – will face a Tk1 crore penalty for failing to properly monitor the fund.
According to the BSEC, the owners of Regent Textile Mills – including its managing director and four other directors – will face substantial penalties amounting to Tk100 crore if they fail to return Tk90 crore within 30 days.
The regulator stated that Regent Textile Mills violated IPO conditions by using Tk80.11 crore (including accrued interest) from its IPO proceeds to acquire a 99% stake in its associate company, Legacy Fashion Ltd.
If they fail to comply with the commission's directive, the company's managing director Salman Habib and directors Md Yakub Ali, Md Yasin Ali, Tanvir Habib, and Mashruf Habib will each face a penalty of Tk20 crore, totaling Tk100 crore.
Meanwhile, Southeast Bank sponsor Farzana Azim and her brother Mamun Aziz sold shares during the prohibited period from 1 November 2020 to 9 May 2021, in violation of securities regulations.
For breaching the rules, the commission has decided to impose a penalty of Tk5 lakh on each of them, totaling Tk10 lakh.
According to the regulations, there is a restriction on share transactions by company owners, their family members, and affiliated institutions – collectively known as insiders.
Insiders are barred from buying, selling, or transferring shares during the period starting two months prior to the end of the financial year and ending on the date when the financial statements are formally considered, adopted, or approved by the company's board of directors or the fund's board of trustees.
Doer Services pulls QIO after subscription halt
After facing a subscription halt, Doer Services has withdrawn its Qualified Investor Offer (QIO), which aimed to raise Tk5 crore from the capital market.
In a press release, the commission stated that it approved Doer Services PLC's application, dated 25 June, to withdraw the QIO.
Accordingly, the QIO consent letter issued earlier on 17 December 2024 has been cancelled.
Meanwhile, the commission has decided to reject the application submitted by Daffodil Computers PLC to convert a Tk46.70 crore loan – taken from its associate Daffodil Family Concern – into equity through the issuance of 4.67 crore ordinary shares at Tk10 each.
