He sent his resignation letter to the official concerned at the finance ministry.

Abdur Rahman, secretary of the Financial Institutions Division of the Ministry of Finance, confirming receipt of the resignation letter, saying that he stepped down citing health reasons.

The development came five days after Sheikh Hasina's government fell and she fled Bangladesh in the face of a civil uprising.

He has remained absent from work for the past several days.

Mr Islam, a Dhaka University teacher, was appointed as chairman of the BSEC in 2020. Last May, he was reappointed for another four-year tenure.

BBN/SSR/AD

Dhaka, Bangladesh (BBN)

The decision was taken at a meeting of the scheme monitoring committee, held at the ICB headquarters in Dhaka on Monday with its convener Saifur Rahman in the chair.

The government earlier formed a five-member committee, headed by Executive Director of the Bangladesh Securities and Exchange Commission (BSEC) Saifur Rahman, to monitor the scheme.

The meeting sources, however, said asset management companies, merchant banks, stock dealers and stock brokers have already been included in the list for receiving the fund.

They also said the fund will be disbursed by the ICB to the share market related entities within this week.

Talking to the BBN, a member of the committee said: “We’ve taken a decision on providing the fund to the share market related entities subject to complying with the existing rules and regulations.”

Relevant documents including Credit Information Bureau (CIB) reports from the central bank on the entities will have to be submitted to the authorities concerned, he added.

In May 2019, the government extended the tenure of the capital market refinancing scheme until December 31, 2022 with some amendments to help revamping the country’s stock market stability.

Now the fund will be treated as a revolving one that will be eligible for other capital market inter-mediatory along with small investors, according to a notification, issued by the Ministry of Finance (MoF) on May 02.

On March 05, 2012, the government formed the scheme worth Tk 9.0 billion to protect the interest of small investors in the share markets that is scheduled to be expired on December 31, 2019.

The scheme was announced as part of the government-set compensation package for the investors who had investment below BDT 1.0 million during 2010-11 stock market debacles.

BBN/SSR/AD

BBN file photo

Dhaka, Bangladesh (BBN)- Bangladesh Securities and Exchange Commission (BSEC) has approved the proposal of issuing mudaraba subordinated bond worth BDT 7.0 billion by the First Security Islami Bank Limited.

The approval was given at a meeting held at the office of the BSEC in the capital on Tuesday with its chairman M. Khairul Hossain in the chair.

The tenure of the bond will be seven years and the characteristics are non-convertible, fully redeemable, unsecured and unlisted, the BSEC said.

The bond will be issued to different financial institutions, insurance companies, corporate entities, and other eligible investors through private placement.

The fund will be raised to strengthen the bank's tier-II capital base. The offer price of the bond will be TBDT1.0 million per unit.

BBN/SSR/AD

File photo: Wall Street Journal

Dhaka, Bangladesh (BBN)- The board of directors of United Commercial Bank (UCB) Limited has decided to form a subsidiary company, aiming to provide mobile financial services (MFS).

The formation of subsidiary company is subject to completion of all regulatory formalities from Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC), said an official disclosure on Monday.

Initial authorised and paid-up capital of this subsidiary company will be BDT 5.0 billion and BDT 500 million respectively which shall be increased from time to time as per investment requirement of the regulatory authority, the disclosure said.

According to the disclosure, UCB will hold at least 51 percent shares of the subsidiary company and rest 49 percent shares may be offered to national/international reputed MFS/DFS providers as per MFS guidelines of Bangladesh Bank.

Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 1986, closed at BDT 16.50 on Sunday.

In the last one year, its share traded between BDT 15.70 and BDT 25.30.

The bank disbursed 10 percent cash dividend for the year ended on December 31, 2017.

As per the un-audited financial statements, the bank’s consolidated earnings per share (EPS) stood at BDT 0.73 for July-September 2018 as against BDT 1.25 for July-September 2017.

In nine months, the consolidated EPS was BDT 1.78 for January-September 2018 as against BDT 2.50 for January-September 2017.

The consolidated net operating cash flow per share (NOCFPS) was BDT 6.04 in the negative for January-September 2018 as against BDT 11.88 for January-September 2017.

The consolidated net asset value (NAV) per share was BDT 26.27 as on September 30, 2018 and BDT 25.38 as on September 30, 2017.

The bank’s paid-up capital is BDT 10.54 billion and authorised capital is BDT 15 billion, while the total number of securities is 1.05 billion.

The sponsor-directors own 34.67 percent stake in the bank while the government owns 0.81 percent, institutional investors own 18.87 percent, foreign investors 1.84 percent and the general public 43.81 percent as on October 30, 2018, the DSE data shows.

BBN/SSR/SR

Dhaka, Bangladesh (BBN)

Under the move, the state-run investment agency is now working to collect fund worth BDT 20 billion through issuing its subordinate bonds shortly, market insiders said.

The ICB chairman Prof. Mojib Uddin Ahmed expects that the fund will be available for investment by the end of this month. “We’ll invest more in the share market in line with the market requirement.”

On the other hand, all scheduled banks are now exempted from complying with the relevant section of existing Banking Companies Act (BCA) for investing in the ICB’s subordinate bonds.

Following the exemption, investment in the ICB bonds will not be included as exposure in the share market by the banks concerned.

Talking to the BBN, a senior official of the Bangladesh Bank (BB) said the central bank has issued a notification in this connection after consultations with the government.

“Such exemption will help encourage the banks to invest their funds in the bonds.

Currently, the banks are allowed to invest maximum 25 per cent of their total capital in share market on solo basis in line with BCA (Amended) 2013.

According to BCA 1991 (Amended 2013), total capital comprises four components: paid-up capital, balance in share premium account, statutory reserves and retained earnings, as stated in the latest audited financial statements.

While calculating total investment in capital market, different components, including all types of shares, debentures, corporate bonds, mutual fund units and other capital market securities, will be taken into account.

The Bangladesh Securities and Exchange Commission (BSEC) earlier approved the ICB’s proposal for issuing bond.
The tenure of the ICB’s non-convertible and fixed rate bond will be seven years. The bond will be fully redeemable, unsecured and unlisted.

The bond units will be issued to different banks, insurance companies, financial institutions, corporate entities, and high-net worth individuals through private placement.

The fund will be invested in primary and secondary market as part of its market-maker role.

The ICB will also invest the fund as sponsor of NRB Mutual Fund and NRB Industrial Fund along with investment in infrastructure and ‘thrust’ sectors of the government, and in public-private partnership (PPP) projects.

BBN/SSR/AD

BBN file photo

Dhaka, Bangladesh (BBN)- Bangladesh’s stocks stayed in the positive trend at midday on Tuesday as investors continued on buying binge on sector-wise stocks.

Following the previous day’s flat movement, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened higher, trading activities remains low.

Within first 15 minutes of trading, the key index of the country’s prime bourse advanced more than 13 points while the CSE All Share Price Index (CASPI) of port city’s bourse gained 4.0 points at 10:45am.

After 30 minutes of trading, the DSEX rose more than 20 points while the CSE All Share Price Index (CASPI) of port city’s bourse advanced 41 points at 11:00am.

After 90 minutes of trading, DSEX advanced more than 2.55 points while the CSE All Shares Price Index gained 14 points at 12:00 noon when the report was filed.

DHAKA STOCK EXCHANGE
DSEX, the prime index of the DSE stands at 5,372 points, advancing 2.55 points or 0.04 percent at 12:00 noon.
The DS30 index, comprising blue chips, also gained 2.17 points to reach at 1,890 points till then.

The DSE Shariah Index (DSES) also gained 1.49 points to stand at 1,241 points till then.

Turnover, the crucial indicator of the market, stands at BDT 1.85 billion when the report was filed at 12:00 noon.
Nurani Dyeing was the most traded stocks till then with shares worth BDT 145 million changing hands, closely followed by Stylecraft BDT 93 million, United Power BDT 76 million Monno Ceramic BDT 74 million and Intech BDT 66 million.

Of the issues traded till then, 131 advanced, 144 declined and 50 issues remained unchanged on the DSE trading floor.

CHITTAGONG STOCK EXCHANGE
The port city bourse – the Chittagong Stock Exchange – (CSE) also saw positive trend till then with CSE All Shares Price Index of port city’s bourse–gaining 14 points to stand at 16,560 points, also at 12:00 noon.

The Selective Categories Index of the port city bourse also rose 8.0 points to reach at 10,027 points till then.

Of the issues traded till then, 62 gained, 65 declined and 25 issues remained unchanged with BDT 50 million in turnover.

BBN/SSR/SR

Dhaka, Bangladesh (BBN)

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the ICB’s proposal of issuing non-convertible fixed rated subordinate bond.

The securities regulator also approved the IPO (initial public offering) of S.S. Steel which will raise a capital worth BDT 250 million under the fixed price method.

The tenure of the subordinated bond to be issued by the ICB will be seven years. The characteristics of the bond will be non-convertible, fully redeemable, fixed rate, unsecured and unlisted.

The units of the ICB’s bond will be issued to different banks, insurance companies, financial institutions, corporate entities and high net worth individuals through private placement.

The fund ICB will raise will be invested in primary and secondary market as part of its market maker role.

The corporation will also invest the fund as sponsor of NRB Mutual Fund and NRB Industrial Fund along with investing in infrastructure and ‘thrust’ sector of government, and PPP projects.

ICB Capital management and Alfa Capital Management are working as trustee and lead arranger of the ICB’s bond respectively.

As per BSEC approval, S.S. Steel will issue 25 million ordinary shares at offer price of BDT 10 each under fixed price method.

The company’s IPO fund worth BDT 250 million will be utilised to purchase machineries, construct building and bear IPO expense.

As per the financial statement for the year ended on June 30, 2017 the company’s net asset value (NAV) per share is 12, without revaluation, and BDT 15.35, with revaluation.

The company reported its earnings per share (EPS) of BDT 1.20 and weighted average of EPS of BDT 0.82.
Citizen Securities and Investment is working as issue manager of S.S. Steel.

BBN/SSR/SR

Dhaka, Bangladesh (BBN)-

The regulatory consent came at a meeting held on Tuesday at the office of the Bangladesh Securities and Exchange Commission (BSEC).

The tenure of the non-convertible floating rate subordinate bond will be seven years.

Different financial institutions and high net worth individuals will be allowed to purchase the units of the bond which is fully redeemable within seven years.

The securities regulator also allowed Runner Automobiles to determine the cut-off price required to go public under book building method.

The company will float IPO (initial public offering) under the book building method to raise a capital worth BDT 1.0 billion.

Under the book building method, institutional investors purchase shares of a company at cut-off price determined through electronic bidding.

Runner Automobiles will utilise the IPO fund for research and development work, purchasing machineries, repaying bank loans and bearing IPO expense.

According to financial statement for the year ended on June 30, 2017, the company’s net asset value (NAV) per share is BDT 55.70, with revaluation reserve. The value is BDT 41.94 without revaluation reserve.

And the weighted average of the EPS (earnings per share) is BDT 3.31.

Runner Automobiles is a motorcycle manufacturer in Bangladesh. The company manufactures 12 different motorcycles ranging in size from 80 to 150 CC. it has 15 percent market share in the country’s auto industry. The company also assembles 3-wheelers and 4-wheelers.

IDLC Investments is working is the issue manager of the Runner Automobiles.

At Tuesday’s meeting, the securities regulator also revised minimum shareholding provision for sponsor/promoter group while issuing private placement shares to go public.

As per exiting provision, sponsor/promoter group is required to hold minimum 30 percent shares of the company for at least three years from the date of according consent.

In the revised condition, the regulator has included directors in the sponsor/promoter group to facilitate 30 percent shareholding condition.

The BSEC officials said after death of one or more sponsor/promoters a company faces difficulties to hold 30 percent shares jointly.

That’s why the company fails to issue private placement shares fulfilling the condition of minimum shareholding by sponsor/promoter group.

BBN/SSR/SR

BBN file photo

Dhaka, Bangladesh (BBN)- Bangladesh’s stocks stayed positive trend at midday on Sunday as investors continued their buying appetite on sector-wise stocks.

Following the previous week’s downward trend, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened higher, but trading activities remains low.

Within first 15 minutes of trading, the key index of the country’s prime bourse advanced more than 43 points while the CSE All Share Price Index (CASPI) of port city’s bourse gained 55 points at 10:45am.

After 30 minutes of trading, the DSEX rose more than 48 points while the CSE All Share Price Index (CASPI) of port city’s bourse advanced 76 points at 11:00am.

After 90 minutes of trading, DSEX advanced 26 points while the CSE All Shares Price Index gained 53 points at 12:00noon when the report was filed.

DHAKA STOCK EXCHANGE
DSEX, the prime index of the DSE stands at 5,606 points, advancing 26 points or 0.46 percent at 12:00 noon.

The two other indices also saw positive trend till then. The DS30 index, comprising blue chips, advanced 4.34 points or 0.20 percent to reach at 2,086 points.

The DSE Shariah Index (DSES) gained 3.29 points or 0.25 percent to stand at 1,325 points till then.

Turnover, the crucial indicator of the market, stands at BDT 882 million, when the report was filed at 12:00 noon.

Salvo Chemicals was the most traded stocks till then with shares worth BDT 62 million changing hands, closely followed by Mercantile Bank BDT 44 million, BRAC Bank BDT 35 million, Aamra Networks BDT 30 million and Queen South Textile BDT 27 million.

Of the issues traded till then, 198 advanced, 62 declined and 15 issues remained unchanged on the DSE trading floor.

CHITTAGONG STOCK EXCHANGE
The port city bourse – the Chittagong Stock Exchange – (CSE) saw positive trend till then with CSE All Shares Price Index of port city’s bourse –gaining 53 points to stand at 17,292 points, also at 12:00 noon.

The Selective Categories Index of the port city bourse also advanced 33 points to reach at 10,447 points till then.

Of the issues traded till then, 87 gained, 29 declined and 20 issues remained unchanged with BDT 42 million in turnover.

BBN/SSR/SR

Retailers trade at Dhaka Stock Exchange office. BBN file photo

Dhaka, Bangladesh (BBN)- Bangladesh’s stocks return to green on Tuesday, after single-day break, supported by heavyweight Grameenphone’s shares, market operators said.

Share prices of GP, which accounted for nearly 17 percent of the major bourse’s total market cap, jumped 1.18 percent to close at BDT 487.40.

Following the previous day’s correction, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) started on downward trend.

The downturn continued first two hours of trading, but last two hours went up steadily, finally key index of the major bourse ended more than 12 points higher while CSE All Share Price Index (CASPI) added 45 points at closing.

DSEX, the core index of the DSE, settled at 5,848, gaining 12.47 points or 0.21 percent over the previous session.
The two other indices also saw marginal gain. The DS30 index, comprising blue chips, advanced 3.50 points or 0.16 percent to finish at 2,156.

The DSE Shariah Index (DSES) gained 7.39 points or 0.54 percent to close at 1,375.

The market activities also rose and the total turnover on the DSE amounting to BDT 4.26 billion, which was 9.52 per cent higher than the previous day’s BDT 3.89 billion.

The gainers took a modest lead over the losers as out of 333 issues traded, 167 closed higher, 116 closed red and 50 issues remained unchanged on the DSE trading floor.

Monno Ceramic Industries topped the day’s turnover chart with shares worth BDT 115 changing hands, closely followed by CVO Petrochemicals Refinery, The IBN Sina, National Bank and BBS Cables.

CAPM IBBL Islamic Mutual Fund was the day’s best performer, posting a gain of 8.88 percent while Asia Pacific Insurance was the day’s worst loser, shedding 5.81 percent.

Port city bourse CSE also ended higher with its CSE All Share Price Index – CASPI –gaining 48 points to settle at 18,078 and selective Categories Index - CSCX –advancing 31 points to finish at 10,913 points.

Here too, the gainers beat the losers as 132 issues closed higher, 71 loser and 29 remained unchanged on the CSE.
The port city bourse traded 6.81 million shares and mutual fund units worth more than BDT 303 million in turnover.

BBN/SSR/SR