The Bangladesh Securities and Exchange Commission (BSEC) has taken a series of regulatory actions against Initial Public Offering (IPO) fund misuse, insider trading, and mutual fund management irregularities during its 964th meeting held on 22 July, chaired by Khondker Rashed Maqsood.
Regent Textile Mills Limited has been directed to return Tk 90 crore within 30 days after BSEC found that the company violated IPO terms by misusing Tk 80.11 crore, including accrued interest, to acquire 99 per cent shares of its associate firm, Legacy Fashion Ltd.
The Commission stated that the unauthorised use of public funds undermined investor confidence and regulatory discipline. Failure to comply will result in fines of Tk 20 crore each for Managing Director Salman Habib and directors Md Yakub Ali, Md Yasin Ali, Tanvir Habib, and Mashruf Habib.
Vanguard Asset Management has been instructed to deposit Tk 9 crore into the Vanguard AML BD Finance Mutual Fund One within 30 days, following findings that it breached securities regulations by investing Tk 4 crore in AFC Health Ltd in 2017.
The trustee of the fund, Bangladesh General Insurance Company (BGIC), was also penalised Tk 1 crore for failing in its supervisory responsibilities.
BSEC said the measures are intended to reinforce accountability and protect the interests of unit holders.
BSEC has fined Southeast Bank sponsor Farzana Azim and her brother Mamun Azim Tk 5 lakh each for engaging in share transactions during a restricted period between 1 November 2020 and 9 May 2021.
The Commission noted that such trades violated capital market regulations and compromised the integrity of trading conditions designed to prevent insider activity.
The Commission accepted DOER Services PLC’s application dated 25 June to withdraw its Qualified Investor Offer (QIO). Consequently, the QIO consent letter issued on 17 December 2024 has been officially cancelled.
BSEC stated the move aligns with regulatory provisions allowing voluntary withdrawal under prescribed conditions.
The Commission has rejected Daffodil Computers PLC’s proposal to convert a Tk 46.70 crore loan from its associate concern, Daffodil Family Concern, into equity by issuing 4.67 crore ordinary shares at Tk 10 each.
BSEC concluded that the plan did not meet required standards and could impact existing shareholder rights, underscoring the regulator’s cautious stance on debt-to-equity conversions.