Tuesday, October 21, 2014

Shahjibazar inflated profit, finds BSEC - Company share price hits roof after trading suspension withdrawal

New Age - 21 October'2014 Tuesday


Shahjibazar Power Company inflated its net profit by Tk 11.68 crore in its financial statement for the July 2013-March 2014 period, finds a Bangladesh Securities and Exchange Commission special audit.
Following the finding, the capital market regulator decided to take action against Shahjibazar for its failure in disseminating correct information in the quarterly report, a Dhaka Stock Exchange web post published on Monday said.
The BSEC revised the Shahjibazar’s net profit after tax to Tk 16.86 crore and earning per share to Tk 1.48 for the nine months, the DSE web post said.
Despite the fact, share prices of Shahjibazar hit roof on Monday after the trading of the company’s shares resumed on the day at the DSE following a suspension since August 11.
Shahjibazar’s share prices rose by 9.98 per cent to Tk 98.10 on Monday from its last closing price at Tk 89.20 before the trade suspension.
As per the DSE data, 7, 15,400 shares of Shahjibazar worth Tk 7 crore changed hands on Monday.
Earlier, Shahjibazar in its financial statement for the period of July 2013 to March 2014 declared a net profit after tax of Tk 28.54 crore and EPS of Tk 2.50.
The share price of the company increased to Tk 89.20 on August 11 from Tk 36.5 on July 15 this year when the company made its debut on the DSE.
Market operators said that the share price of Shahjibazar continued to rise despite the BSEC investigation because of a rumour that the price of the scrip would rise further.
Manipulators were also playing a major role behind the abnormal rise in the share price of the company even after the suspension of the trading of the shares of the company for more than two months, they said.
The unusual price hike also refers that stocks manipulators are not afraid of any step taken by the BSEC as the share price of the company is still on the rise, operators said.
They said manipulators managed to escape from any sort of regulatory action in most of the cases and that also encouraged them to engage in such activities repeatedly.
Low number of free-float shares made it easy for manipulators to raise the company’s share price abnormally, they said.
In September this year, the BSEC decided to conduct special audit on Shahjibazar’s financial report and appointed A Qasem and Company for examining the third quarterly financial statements disclosed by Shahjibazar.
Considering the audit, Shahjibazar’s consolidated net profit after tax and EPS for January-March 2014  were revised to Tk 16.67 crore and Tk 1.46 respectively from Tk 16.87 crore and Tk 1.48.
The commission also revised its consolidated net profit after tax and EPS from Tk 9.04 crore and Tk 0.79 crore to Tk 8.88 crore and Tk 0.78 respectively for the same period of the previous year.

 

Shahjibazar Power trading resumes

FE  Report - 21 October'2014 Tuesday
Share trading of Shahjibazar Power Company Ltd (SPCL) resumed Monday after a suspension period of more than ten weeks with an open price of Tk 89.2 each, officials said.

Bangladesh Securities & Exchange Commission (BSEC) suspended the share trading of the company for 'unusual' price hike of its share within debut of 19-trading session on August 11.

The rental power generation company made debut on July 15, this year as 17th listed company under the fuel and power sector in the Dhaka Stock Exchange (DSE).

Between its debut on July 15 and August 11, Shahjibazar's share price jumped 256.8 per cent to Tk 89.2 from its issue price of Tk 25. The 'abnormal' price hike prompted the securities regulator to form a two-member panel to investigate the matter.

Turnover hits below Tk 6.0b-mark

FE  Report - 21 October'2014 Tuesday
Stocks tumbled for the third running session Monday amid high volatility with turnover remained sluggish as substantial profit taking from the blue-chip stocks led to further correction.

The market started moving higher at the beginning, but sooner after that market became volatile. After moving lower for much of the trading day, index climbed well off their lows for the session but still ended the day in the red.

At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 5,144.50 points, shedding 32.24 points or 0.62 per cent from previous session.

The other two indices also ended lower. The DS30, comprising blue chips lost 20.87 points or 1.06 per cent to close at 1,933.26 points. The DSE Shariah Index went down by 10.19 points or 0.83 per cent to close at 1,207.32 points.

Trading at DSE remained sluggish, accumulating below Tk 6.0 billion, lowest in 5 weeks. The total turnover amounted to Tk 5.96 billion, registering a decline of 13.68 per cent over the previous session's value of Tk 6.87 billion.

The investors' attention was mostly concentrated on power, engineering and pharma - the sectors that accounted for 20 per cent, 13 per cent and 12 per cent respectively of the day's total turnover.

"The market prolonged its bearish outlook as the investors' sell-off continued throughout the day," said International Leasing Securities, in its regular market analysis.

Despite the market witnessed downturn movement, several small caps stocks from various sectors outperformed the day's trading amidst quarterly earnings disclosure and expectation of future profitability, said the International leasing.

IDLC Investments said: "The downturn spiral continued in capital market, amid slowing market participation and weakening investors' confidence".

 "Stocks extended the recent sell-off despite the release of upbeat of economic data," said LankaBangla Securities.

Remittance data showed 28.63 per cent rise on September'14 compared to same month of previous year.

"Substantial profit taking from the blue-chip stocks has led to this further correction in the index," said BRAC EPL, a stock brokerage.

NBFIs which gained 0.81 per cent, was the only sector among the large cap stocks that appreciated in the session. Banks closed flat with 0.03 per cent gain.

All the other major sectors closed in red. Food and allied retraced the highest by 1.36 per cent. Power and telecommunication went down by 0.88 per cent and 0.84 per cent respectively. Pharmaceuticals closed 0.51 per cent lower.

The losers took a lead over the gainers as out of 298 issues traded, 166 declined, 100 advanced and 32 remained unchanged on the DSE floor.

The port city bourse, Chittagong Stock Exchange (CSE) also saw marginal decline with its Selective Categories Index - CSCX - lost 39.45 points to close at 9,677.96 points.

Losers beat gainers 138 to 65, with 22 issues remaining unchanged at the port city bourse that traded 11.84 million shares and mutual fund units, turnover value of Tk 465.89 million.

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Steelmaker Appollo to spend Tk 200cr on tech upgrade

Daily Star-21 October'2014 Tuesday
Gazi Towhid Ahmed
Appollo Ispat Complex, a leading steelmaker, will spend Tk 200 crore to introduce environment-friendly technology in May next year to help cut production costs and boost capacity.
The technology will reduce production costs by 30 percent, while increasing capacity by 20 percent from its existing 1.20 lakh tonnes a year, said Abdur Rahman, deputy managing director of Appollo.
Germany's radiant tube furnace technology will help Appollo produce lead and acid free corrugated iron sheets in a non-oxidising furnace at its Narayanganj plant.
The radiant tube uses a rapid heating furnace that cuts out hydrochloric acid and lead usage during the galvanising process.
“Eliminating lead and acid usage during the final stages of production also makes the process cost effective and environment friendly, mostly used in developed countries. These CI sheet will soon be available in the local market,” Rahman said.
The finished product will be shinier, more durable and environment friendly, he said.
The local market size is around Tk 7,000 crore, of which Appollo holds nearly 20 percent, he said.  Bangladesh needs six lakh tonnes CI sheet a year to match the local demand, he said.

“Appollo Ispat Complex has been steadily progressing. Even though it has not been listed for long, it is one of the leading engineering sector companies in terms of share transaction,” he said.
Appollo recently signed an agreement with world-famous Japanese steel maker Marubeni-Itochu, he said.
Appollo's net profit rose 3 percent to Tk 37.36 crore for the year ended June 30, 2014 from the previous year, and it consequently gave out 15 percent dividends to shareholders. The company's earnings were Tk 1.84 per share with a net asset value Tk 31.37.
“Our revenue saw a decline of 2.36 percent to Tk 495 crore due to political turmoil that hit production very badly,” said SK Abul Hassan, executive director of the company.
However, the company logged increased profits despite a fall in revenue as liability also declined in the period, he said. Appollo is trying to reach targets despite all hurdles including global recession and lack of supply of power and gas, Rahman said.  “All these problems will be resolved soon.”
Appollo has authorised capital of Tk 500 crore of which Tk 250 crore is paid up. It raised Tk 220 crore by offloading 10 crore primary shares through initial public offerings. The proceeds were utilised to repay bank loans. The offer price of each share was Tk 22 including Tk 12 in premium.

Published: 12:00 am Tuesday, October 21, 2014


Friday, October 17, 2014

Stocks fall on rumour-driven sell-offs

New Age - 17 October'2014 Friday


Dhaka stocks declined on Thursday, the last trading session of the week, after rising in the previous trading session amid rumour-driven share sales.
The key index of Dhaka Stock Exchange, DSEX, declined to 5,285.83 points, shedding 0.55 per cent or 29.27 points.
Market operators said that in line with last couple of trading sessions’ negative vibe, the market declined on the day following rumours on Bangladesh Bank’s tightened monitoring over the capital market, mandatory Tax Identification Number for Beneficiary Ownership Account opening and the downtrend vibe of the market that might prolong for more trading sessions.
Union Capital managing director Akter H Sannamat told New Age, ‘Profit taking might be the main reason behind the downward vibe in the capital market for last couple of trading sessions.’
‘Besides, investors’ share switching move from sector to sector to re-arrange their portfolio was also another reason,’ Akter, also the vice-president of Bangladesh Merchant Bankers Assocation, said.
On the other hand, a baseless rumour spread among the investors in recent time that the market correction might prolong for few more trading sessions, he said.
Asked about a rumour that the TIN will be mandatory for all investors for opening new BO Account, former DSE vice-president Ahmed Rashid Lali told New Age, ‘There might have been rumour in this regard. But we are not informed about any such binding.’
DS30, the blue-chip index of the bourse, finished flat at 1,997.79 points, shedding 0.21 per cent or 4.29 points.
The Shariah index of the bourse, DSES, declined by 0.50 per cent, or 6.31 points, to close at 1,242.46 points on the day.
The turnover of the bourse declined to Tk 814.41 crore compared with Tk 975.25 crore in the previous trading session.
Of the 303 shares and mutual funds traded on Thursday, 88 advanced, 187 declined and 28 remained unchanged.
‘The market emerged red as clients remained more cautious amid the increased level of volatility,’ IDLC Investments said in its daily market commentary.
‘The shakiness was reined in the later part of the session, beating down market sentiment,’ it said.
‘Besides, scrip-wise movements were present with 55 scrips changing more than 3 per cent of their respective prices,’ said IDLC.
BESCO led the turnover chart as its shares worth Tk 39.42 crore changed hands.
Titas Gas, Square Pharmaceuticals, MJL Bangladesh, Bangladesh Building Systems, Grameenphone, Delta Life Insurance, Heidelberg Cement, Peninsula Chittagong and BEXIMCO were among other turnover leaders.
BESCO shares gained the most on the day as its share prices rose by 9.59 per cent, while Fu Wang Food were among other turnover leaders.

Turnover dips to one-month low

FE Report - 17 October'2014 Friday
Stocks returned to the red Thursday after previous day's upturn with turnover dipping to one-month low on major bourse as investors remained more cautious amid the increased level of volatility.

After falling sharply at the open, stocks have regained some ground, but index wrapped up the day in negative territory. DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 5,285.83 points, shedding 29.27 points or 0.55 per cent.

The two other indices also closed in the red. The DS30, comprising blue chips, lost 4.29 points or 0.21 per cent to close at 1,997.79 points. The DSE Shariah Index dropped 6.31 points or 0.50 per cent to close at 1,242.46 points.

The total turnover on DSE came down to Tk 8.14 billion, registering a decline of 16.5 per cent over the previous session's value of Tk 9.75 billion. It is one-month lowest turnover since Tk 6.68 billion on September 15.

The investors' attention was mostly concentrated on power, engineering and pharma - the sectors that accounted for 23 per cent, 14 per cent and 13 per cent respectively of the day's total turnover.

 "The market volatility resurfaced in the day's session as stocks began to tumble across the major sectors. The fear of possible market correction fuelled the pessimistic turn in the market along with severe drop in overall market's participation," said International Leasing Securities.

However, selected June-ending stocks from the fuel and power sector maintained their recent price rally ahead of yearly dividend announcement, said the International Leasing.

 "The market emerged red as clienteles remained more cautious amid the increased level of volatility," said IDLC Investments.

The shakiness reined in the later part of the session, beating down market sentiment. Besides, scrip-wise movements were present with 55 issues changing more than 3.0 per cent of their respective price, said the merchant bank.

LankaBangla Securities said: "The benchmark index fell to their lowest intraday levels in last five days before bouncing back to the upside".

Last hour buying appetite reflected a number of positive catalysts including whopping consumer confidence of 25.9 points in the first half of 2014 to 66.4 points from the previous six months, said the stock broker, quoting MasterCard Worldwide Index of Consumer.

 "It is normal for the index to turn around and go slow when it came close to 5,300 points, as investors becomes highly sensitive whenever the index comes near to any round figure," said Zenith Investments.

Among the major sectors only power posted positive yield of 1.38 per cent. All the others rector closed in red besides food and allied which closed flat with no movement.

Banks and NBFIs retraced by 0.97 per cent and 0.96 per cent respectively. Pharmaceuticals saw 0.91 per cent correction, after remaining up for four consecutive sessions. Telecommunication also went down by 0.27 per cent.

Losers outpaced gainers as out of 303 issues traded, 187 declined, 88 advanced and 28 remained unchanged on the DSE floor.

Dhaka Electric Supply Company (DESCO) was the day's most traded stocks with shares worth Tk 394.28 million changing hands followed by Titas Gas, Square Pharma, MJL BD and Bangladesh Building Systems.

DESCO was also the day's highest gainer, posting a rise of 9.59 per cent while Fu-Wang Food was the day's worst losers, losing 5.37 per cent.

Activities decreased in the major bourse (DSE) where trade and volume were down by 11.36 per cent and 21.32 per cent respectively. A total of 0.154 million trades were executed with 174.89 million securities of trading volume.

The total market capitalization on DSE stood at Tk 3,467.62 billion against Tk 3,477.65 billion in the previous session.

The port city bourse, Chittagong Stock Exchange (CSE) also closed in the red with its Selective Categories Index - CSCX - lost 47.78 points to close at 9,911.93 points.

Losers beat gainers 158 to 51, with 16 issues remaining unchanged at the port city bourse that traded 14.96 million shares and mutual fund units, turnover value of Tk 566.46 million

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Profit takers pull market down

Daily Star - 17 October'2014 Friday
Investors sold off stocks and mutual fund units for profit, pushing the market into the red yesterday.
DSEX, the benchmark general index of the Dhaka Stock Exchange, lost 29.27 points or 0.55 percent, to close at 5,285. The shariah index, DSES, of the premier bourse, fell 6.31 points or 0.50 percent, to close at 1,242.
After falling sharply in the opening hour, stocks regained some ground but the index wrapped up the day in the negative territory, LankaBangla Securities said. Trade in the last hour of the day reflected buying appetite and consumer confidence, but it was unable to turn the situation around, it added.
Consumers in Bangladesh largely have an optimistic economic outlook, despite continued uncertainty in the global economy, according to the MasterCard Worldwide Index of Consumer Confidence.
The country recorded the biggest improvement among 27 countries from the Asia Pacific, Middle East and Africa region covered in the study.
In Bangladesh, consumer confidence jumped a whopping 25.9 points in the first half of 2014 to 66.4 points from the previous six months, MasterCard said.
The market emerged red as operators remained wary amid an increased level of volatility, said IDLC Investments.
Shakiness reigned in the later parts of the session, beating down market sentiment, the investment banker said.
Turnover, the most important indicator of the market, declined 16.5 percent to Tk 814 crore, compared to the previous day.
Losers beat gainers 187 to 88, with 28 issues unchanged out of 303 that traded on the DSE.
A total of 1.54 lakh trades were executed with 17.49 crore shares and mutual fund units changing hands on the Dhaka bourse.
Among the major sectors, investors were most active in the fuel and power sector that showed a gain of 1.4 percent.
Desco was the most liquid stock of the day.
Published: 12:00 am Friday, October 17, 2014

Wednesday, October 15, 2014

IPO FUND DIVERSION - Argon Denim, Salvo Chem fined, barred from raising capital for 3yrs

New Age - 15 October'2014 Wednesday


The stock market regulator on Tuesday fined Argon Denims and Salvo Chemicals Industry Tk 35 lakh and barred them from raising any capital from the market for three years for violating conditions of using the funds raised through initial public offering (IPO).
The decision of Bangladesh Securities and Exchange Commission came in a regular meeting on the day presided over by its chairman M Khairul Hossain.
The BSEC fined Argon Denims Tk 30 lakh and Salvo Chemicals Tk 5 lakh and also restricted the two companies from raising any capital from the stock market in next three years.
A BSEC press release issued on the day said that Argon Denim paid loans of ONE bank, Mercantile Bank and Tk 3 crore loan of Lanka Bangla Finance Ltd from the IPO funds without mentioning it in the IPO prospectus.
Furthermore, Argon Denim paid Tk 27.94 crore in cash to its contactors and suppliers. It also paid construction workers through Everyway Engineers, said the BSEC press release.
Through this Argon Denim violated the prospectus condition B-7 and Section-18 of Securities and Exchange Ordinance 1969, it said.
The BSEC release said that Salvo Chemicals spent Tk 24 crore from the IPO fund but showed Tk 26 crore in a report submitted to the commission.
It also said that the company spent Tk 2.21 crore in cash without banking channel.
Through this, Salvo Chemicals violated the prospectus condition B-4, 6 and Section-18 of Securities and Exchange Ordinance 1969, it said.

Stocks dip for second day

Daily Star - 15 October'2014 Wednesday
Stocks declined for the second day yesterday, as investors offloaded shares to rebalance portfolios.
DSEX, the benchmark general index of the DSE, lost 16.63 points or 0.31 percent, to close at 5,292.60. The shariah index of the bourse, DSES, gained 2.36 points, or 0.19 percent, to close at 1,240.11.
Market indicators show that multinational companies and manufacturing stocks are back on track as investors eye further gains, LankaBangla Securities said.
“Sidewalk movement continued on the premier bourse and investors continued to reallocate their position, while turnover figures remained buoyant,” IDLC Investments said.
The market's selling and buying pressure settled with pharma, oil, and food and allied stocks, gaining 2.1 percent, 1.2 percent and 0.1 percent respectively.
The banking sector fell 2.2 percent, followed by telecoms 2.19 percent and non-bank financial institutions 0.07 percent.
Turnover, the most important indicator of the market, advanced 8.9 percent to Tk 1,097 crore.
 
Out of the 306 issues traded on the DSE, 148 declined, 140 advanced and 18 remained unchanged.
Square Pharma was the day's most traded stock with 20.25 lakh shares worth Tk 69 crore changing hands, followed by MJL Bangladesh, Grameenphone, Beximco and Delta Life Insurance.
ACI Formulations was the highest gainer, posting a rise of 9.97 percent, while Savar Refractories was the day's worst loser, slumping 7.27 percent.
Chittagong Stock Exchange also saw a decline with its selective categories index, CSCX, losing 36.03 points, to close at 9,935.84.
Losers beat gainers by 138 to 83, with 15 issues remaining unchanged at the port city bourse that traded two crore shares and mutual fund units with turnover of Tk 67 crore.
Published: 12:00 am Wednesday, October 15, 2014

Regulator okays Shasha Denims IPO, fines three for irregularities

Daily Star - 15 October'2014 Wednesday
Bangladesh Securities and Exchange Commission yesterday approved the IPO (initial public offering) proposal of Shasha Denims, which aims to raise Tk 175 crore from the public.
The approval came at a meeting at the commission's office in the capital.
The denim producer will offload five crore ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each Tk 10 share.
The company will raise the fund to expand business, repay bank loans and bear the expenses of the IPO proceedings.
According to the audited financial reports for the year that ended on December 31, 2013, the company's earnings per share stand at Tk 3.73, while its net asset value is Tk 52.95.
AFC Capital and Imperial Capital will manage the issue for Shasha.
The stockmarket regulator also imposed a fine of Tk 50 lakh on Shamim Ahmed, executive director of Sylhet Metro City Securities (SMCS), for swindling money from clients' portfolios.

The regulator blocked all his beneficiary owner's accounts until further notice. He is also barred from involvement in any profession related to the stockmarket.
The BSEC asked the Chittagong Stock Exchange to work on repaying the SMCS clients within November 30. Another investigation into SMCS is still going on.
The regulator has fined Argon Denims Tk 30 lakh and Salvo Chemical Industry Tk 5 lakh as they misused IPO funds. Both the companies are also barred from raising further capital from the market for the next three years.
The securities regulator has formed a committee to develop a guideline for the non-performing companies at the over-the-counter market. 

Published: 12:00 am Wednesday, October 15, 2014

DSEX sheds 16.63 points

FE Report - 15 October'2014 Wednesday
Stocks slipped in the red for the second running session Tuesday amid modest volatility as investors booked profit.

The market opened with a positive mood, but could not sustain amid sale pressure. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 16.63 points or 0.31 per cent to close at 5,292.60 points.

The DS30, comprising blue chips, lost 0.84 points or 0.04 per cent to close at 1,993.27 points. However, the DSE Shariah Index managed to close in positive territory like previous session, gaining 2.36 points or 0.19 per cent to end at 1,240.10 points.

Trading at DSE remained upbeat. The total turnover amounted to Tk 10.97 billion, registering an increase of 9.15 per cent over the previous session's value of Tk 10.05 billion.

The investors' attention was mostly concentrated on pharmaceuticals, power and NBFI - the sectors that accounted for 17.93 per cent, 17.78 per cent and 10 per cent respectively of the day's total turnover.

"The market endured two consecutive session negative sessions for the first time in the last one-month as the inevitable profit booking attitude of the investors surfaced across the major sectors," said International Leasing Securities.

Most of the sectors suffered by the market's overall gloomy vibe although large cap stocks from pharma and power stocks along with a few small cap stocks from NBFI sector managed to attract investors' amidst the expectation of further positive returns and satisfactory year-end declaration, said the International Leasing.

LankaBangla Securities said: "Market continued to extend loss as investors continued to banked profit on banking stocks for the second day".

"Market indicators show that multinational companies and manufacturing stocks are back on their track as investors are smacking lips at further gain on these stocks," the stock broker said.

 The port city bourse, Chittagong Stock Exchange (CSE) also saw marginal correction with its Selective Categories Index - CSCX - lost 36.03 points to close at 9,935.84 points.

Losers beat gainers 138 to 83, with 15 issues remaining unchanged at the port city bourse that traded 20.10 million shares and mutual fund units with turnover value of Tk 679.22 million.

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BSEC imposes bar on two cos to raise funds - It approves IPO proposal of Shasha Denims

FE Report - 15 October'2014 Wednesday
The securities regulator has imposed embargo on Argon Denims and Salvo Chemical Industry from raising fund from capital market for next three years for 'unlawful' expenditure of IPO funds, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) also fined Argon Denims and Salvo Chemical Industry Tk 3.0 million and Tk 0.5 million respectively.

The decisions were taken at a commission meeting held Tuesday at the BSEC office.

The securities regulator has approved the IPO (Initial Public Offering) proposal of Shasha Denims which will raise a fund worth Tk 1.75 billion by offloading 50 million shares at an offer price of Tk 35, including a premium of Tk 25 for each ten taka share.

As per audited financial statement for the year ended on December 31, 2013 the earnings per share (EPS) and net asset value (NAV) of Shasha Denims are Tk 3.73 and Tk 52.95 respectively.

At Tuesday's meeting the securities regulator has also imposed a penalty of Tk 5.0 million on former director of Sylhet Metro City Securities Shamim Ahmed who allegedly embezzled shares and money of his clients.

At the same time, Mr. Ahmed will never be involved with any organisation of capital market and his BO (beneficiary owner's) account has been freezed until further instruction.

According to BSEC findings, Argon Denims breached securities rules by spending IPO fund beyond the conditions set in the prospectus and consent letter approved by the securities regulator.

The BSEC said the company paid excess money to repay short-term loan and debt taken from One Bank and Mercantile Bank respectively. Besides, the company re-paid the short term loan worth Tk 30 million taken from LankaBangla Finance, although the issue was not mentioned in the prospectus.

Besides, Argon Denims paid Tk 279.4 million for purchasing construction materials without banking channel.

In January, 2011 Salvo Chemical Industry raised a fund worth Tk 260 million from the capital market.

According to BSEC finds, the Salvo Chemical Industry showed utilisation of Tk 260 million although the company utilised Tk 240 million. The company also spent Tk 22.1 million without banking channel.

The securities regulator banned the involvement of Shamim Ahmed, a former director of Sylhet Metro City Securities (SMCS), with the capital market for ever as his involvement in embezzling clients' shares and money has been proved.

The regulator has also decided to issue directive on Chittagong Stock Exchange (CSE) for submitting report to the commission within November 30 next by taking initiatives to return the money and shares of the clients of SMCS.

At Tuesday's meeting, the BSEC has formed a three-member body led by executive director Mohammad Anwarul Islam to formulate a guideline on as to how the aspirant companies of OTC (over-the-counter) market can be re-listed with main bourse.

"The non-performing companies of OTC market recently showed the tendency to be re-listed with the main bourse. The BSEC took the decision of considering the companies' re-listing as per specific guideline," the BSEC said.

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Tuesday, October 14, 2014

Stock market regulator to form anti-money laundering cell

New Age - 14 October'2014 Tuesday


The Bangladesh Securities and Exchange Commission has decided to form an anti-money laundering and combating the financing of terrorism cell as per the requirement of the Money Laundering Prevention Act 2012, a BSEC senior official told New Age.
The BSEC took the decision at a recent meeting presided over by its chairman M Khairul Hossain.
Forming an anti-money laundering cell or wing is mandatory for all the reporting authorities who are concerned with the issue, BSEC executive director Saifur Rahman said.
To fulfill the requirement of the Money Laundering Prevention Act 2012, the commission has decided to form a cell that will deal with the money laundering issues in the capital market, Saifur said.
He also said that formation of the committee would  help ensure better coordination among the reporting authorities which were working for prevention of money laundering from the country.
As per the decision of the commission, BSEC executive director Ruksana Chowdhury would head the committee, while BSEC ED Md Ashraful Islam, director Sheikh Mahbub Ur Rahman, deputy director Mohammad Zubair Uddin Bhuiyan and assistant director Mohammad Rakibur Rahman would be the members of the cell.
Bangladesh Bank earlier this year asked all the merchant banks, brokerage houses and all other institutions involved with the capital market to report any sort of suspicious transactions of fund that may involve money laundering or terror financing.
At present, Central Bank from its Bangladesh Financial Intelligence Unit supervises all the money laundering and terror financing related activities of the capital market.