The High Court (HC) Thursday declared illegal the securities regulator's order regarding reduction of rights offer of RN Spinning Mills Ltd from Tk 2.78 billion to Tk 1.19 billion, lawyers concerned said.
"Following the HC order, now there is no legal bar to take into account the entire subscription worth Tk 2.78 billion as rights offer issue of the company," RN Spinning's lawyer Mahbub Shafique told the FE.
A HC bench comprising Justice Salma Masud Chowdhury and Justice Md. Khasruzzaman made a rule, issued earlier over the matter, absolute, declaring the securities regulator's order illegal.
The Bangladesh Securities and Exchange Commission (BSEC) earlier asked the RN Spinning Mills to reduce the rights offer issue from Tk 2.78 billion to Tk 1.19 billion as it in an investigation found that the company didn't timely subscribe all rights shares, approved by the regulator.
The regulator also reportedly found irregularities in the procedure of rights share subscription.
Two sponsor directors and a sponsor shareholder, the lawyer said, had paid for the rest of the rights shares to another bank account after the subscription time ended.
He further said that the BSEC at one stage approved the payment, but later in an order, it directed the company to decrease its rights share issue.
Then, challenging this order, the company went to the HC.
When contacted, Advocate Probir Neogi, lawyer of BSEC, told the FE, "The HC made the rule absolute."
Former law minister Shafique Ahmed was also present on behalf of the company in the court.
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