FE Report (October 21, 2010)
The Securities and Exchange Commission (SEC) will not allow stock brokers to open their branch offices outside divisional towns.
It also approved the rights offer of Uttara Finance and Investment Limited (UFIL) at ratio 1:3.
The SEC Executive Director Anwarul Kabir Bhuiyan announced this Wednesday after a commission meeting held at the SEC building with chairman Ziaul Haque Khondker in the chair.
The commission has decided to consider only those applications that were submitted by October 4 to the Dhaka Stock Exchanges for opening branches of brokerage houses.
"The DSE will have to send the applications to the SEC by 5 pm on Wednesday (today) for consideration," Mr. Bhuiyan said.
The SEC also said that no brokerage branch would be allowed to operate within the radius of two kilometers from their principal offices.
As per the SEC approval, the Uttara Finance and Investment Limited will offer one rights share against three existing shares at the issue price of Tk 30, including a premium of Tk 20. The company will offer a total of 13.2 million rights shares.
The SEC has also ordered the Islamic Finance and Investment Limited (IFIL) to abstain from transferring rights shares to the accounts of it's under writers until further order.
The order came against the backdrop of a breach in securities' rules by the IFIL in distribution of rights offer.
On October 14, the SEC formed a committee to probe the allegation of breaching securities rules by the IFIL as the regulator received a spate of complaints from the investors.
Earlier, the company declared 25 per cent stock dividend for 2009 and offered one rights share against every two existing shares.
The company set April 4 as the record date for the entitlement of the rights offer and stock dividends after getting approval from the SEC.
But the investors said the company did not send offer documents even after expiry of the entitlement period.
The Securities and Exchange Commission (SEC) will not allow stock brokers to open their branch offices outside divisional towns.
It also approved the rights offer of Uttara Finance and Investment Limited (UFIL) at ratio 1:3.
The SEC Executive Director Anwarul Kabir Bhuiyan announced this Wednesday after a commission meeting held at the SEC building with chairman Ziaul Haque Khondker in the chair.
The commission has decided to consider only those applications that were submitted by October 4 to the Dhaka Stock Exchanges for opening branches of brokerage houses.
"The DSE will have to send the applications to the SEC by 5 pm on Wednesday (today) for consideration," Mr. Bhuiyan said.
The SEC also said that no brokerage branch would be allowed to operate within the radius of two kilometers from their principal offices.
As per the SEC approval, the Uttara Finance and Investment Limited will offer one rights share against three existing shares at the issue price of Tk 30, including a premium of Tk 20. The company will offer a total of 13.2 million rights shares.
The SEC has also ordered the Islamic Finance and Investment Limited (IFIL) to abstain from transferring rights shares to the accounts of it's under writers until further order.
The order came against the backdrop of a breach in securities' rules by the IFIL in distribution of rights offer.
On October 14, the SEC formed a committee to probe the allegation of breaching securities rules by the IFIL as the regulator received a spate of complaints from the investors.
Earlier, the company declared 25 per cent stock dividend for 2009 and offered one rights share against every two existing shares.
The company set April 4 as the record date for the entitlement of the rights offer and stock dividends after getting approval from the SEC.
But the investors said the company did not send offer documents even after expiry of the entitlement period.
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