The stock regulator also threatened the three with cancelling their licences if they failed to mitigate their capital shortage by June 30
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday decided to cancel the initial public offering (IPO) quota facility of merchant banks Bengal Investment, CAPM Advisory and PLFS Investment for violating securities rules.
The stock regulator also threatened the three with cancelling their licences if they failed to mitigate their capital shortage by June 30.
As per the securities rules, merchant banks and portfolio managers must have a capital of Tk 25 crore, which the three did not possess.
Also at the commission meeting yesterday, MTB Securities and Nexus Securities were slapped with fines of Tk 5 lakh and Tk 2 lakh respectively for violating several securities rules.
The regulator also slapped a Tk 2 lakh penalty on First Lead Securities for breaking rules.
The commission punished the brokerage house following the complaint filed by Sirajul Hoque, Nasima Begum, MA Ahad and Ayesha Tasnim Ishita.
The BSEC also decided to defer the IPO share subscription of Sonali Life Insurance from March to May following the application of the company.
The regulator made the decision for the interest of the investors, it said.
In December last year, the BSEC approved Sonali Life Insurance Company’s IPO worth Tk 19 crore.
The insurance company will invest its total IPO fund, raised from offloading 1.9 crore shares, in the capital market by purchasing treasury bonds, paying IPO costs and others.
ICB Capital Management and Agrani Equity and Investment will act as the issue manager.
In less than three months of operations in 2013, Sonali Life launched over 21 branches and service centres across the country, with Tk 18 crore paid-up capital.