Public subscription of Hamid Fabrics allowed from Sept 28

The securities regulator has banned the activities of the chief executive officer (CEO) of First Securities and Services for five years and also fined Tk 1.0 million due to his involvement with securities business and unlawful activities, officials said.
The regulator has also imposed the penalty of Tk 5.5 million on some other stock brokers and individuals for breaching securities rules while conducting share trading.
The decisions were taken at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per another regulatory decision, the public subscription of Hamid Fabrics will be allowed from September 28, 2014 to October 2, 2014 through 174 brokerage firms of Dhaka Stock Exchange (DSE), 73 brokerage firms of Chittagong Stock Exchange (CSE) and 37 merchant banks.
According to BSEC investigation, Kazi Saifur Rahman, the CEO of the First Securities and Services (FSS) secured overall 42.30 per cent profit by conducting the trading of the shares of Bangas through his two accounts opened in the FSS and Heritage Capital Management.
The securities regulator revealed that Mr. Kazi secured the profit from April 8, 2013 to July 28, 2013 and the Bangas declared to issue five rights shares against one exiting share at a board meeting held on July 25, 2013.
Later, the FSS signed a MoU with the Bangas to work as issue manager of the rights issue.
"Those activities, which were executed to ensure ill objective, are tantamount to series of transaction," said the securities regulator.
Mr. Kazi also secured 4.29 per cent profit by transacting the shares of Tallu Spinning Mills through his own account.
"As a CEO of the FSS Mr. Kazi breached the rules of merchant banker and portfolio manager through his involvement with share trading," the BSEC said.
As per the BSEC decision, Mr. Kazi will have to pay a penalty of Tk 1.0 million whereas the FSS and Heritage Capital Management will have to a penalty of Tk 1.5 million and Tk 2.5 million respectively.
As per another BSEC decision, the FSS will also have to pay a penalty of Tk 0.5 million as it furnished false statement in the prospect while working as the issue manager of the FAR Chemical Industries.
The FAR Chemical Industries has also been fined Tk 0.5 million.
The regulator has also imposed a penalty worth Tk 0.5 million on Apex Investment and Tk 0.5 million on Phoenix Securities for breaching securities rules.