Dhaka, Bangladesh (BBN)- The securities regulator has turned down the rights offer of First Security Islami Bank Limited (FSIBL) for its failure to meet the securities rules concerned, officials said.
“BSEC is not in a position to consider the application of First Security Islami Bank Limited regarding approval of rights issue, as the Company has failed to comply with the requirement of rule 3(f) of the Securities and Exchange Commission (Rights Issue) Rules, 2006,” said the news posted on the Dhaka Stock Exchange (DSE) website on Tuesday.
According to the section 3(f) of the Securities and Exchange Commission (Rights Issue) Rules, 2006, an issuer of a listed security may make rights issue by issuing rights share offer document, if the issuer or any of its directors is not a bank defaulter.
A DSE official said they received the letter regarding the FSIBL rights issue from the securities regulator on Tuesday.
BSEC officials could not be reached to comment on the decision. Earlier, FSIBL decided to issue one rights share against two existing shares at an extra-ordinary general meeting (EGM).
BBN/SSR/AD-17Sept14-11:28am (BST)
