BSEC approves prospectus of Credence Unit Fund

The securities regulator Tuesday approved the draft prospectus of Credence First Shariah Unit Fund.

The initial size of the fund will be Tk 100 million.

The approval came at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

At Tuesday's meeting, the BSEC also imposed a penalty worth Tk 3.0 million on Dragon Sweater and Spinning for not presenting the utilisation of IPO (initial public offering) fund in the financial statement.

As per the BSEC approval, Credence First Shariah Unit Fund will collect Tk 90 million from unit holders while the sponsors will contribute remaining Tk 10 million. The offer price of the fund's units will be Tk 10 each.

Credence Asset Management Ltd. (CAML) is the sponsor and fund manager of the Credence First Shariah Unit Fund, whereas Investment Corporation of Bangladesh will work as trustee and custodian of the fund.

The securities regulator has imposed a penalty worth Tk 3.0 million on Dragon Sweater and Spinning for breaching securities rules while utilising IPO fund.

According to special audit report, the company spent 53.62 per cent of IPO fund in cash. But the company did not include the expense in the financial statement.

Dragon Sweater and Spinning also did not preserve financial statement and that's why proper and accurate information was also not reflected in the financial statement. Besides, the company did not purchase machineries within the timeframe mentioned in the IPO prospectus.

As per another BSEC decision, M Securities, a DSE broker, will have to pay a penalty worth Tk 1.0 million as the company breached the securities rules by disbursing margin loans against 'Z' category shares. By breaching rules, the company also disbursed margin loans against cash account.

At Tuesday's meeting, the securities regulator also decided to issue warning letter to The Dacca Dyeing & Manufacturing Company and its issue manager for not submitting quarterly statement properly.

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