Rights offers of GSP Finance, Dacca Dyeing refused

The securities regulator has regretted its inability to consider the rights offers of GSP Finance Company and Dacca Dyeing and Manufacturing Company as they have failed to comply with the securities rules, officials said.

The officials of the Bangladesh Securities and Exchange Commission (BSEC) have said the regulator issued letter Tuesday stating the rejection of the rights offers of the companies.

As per the regulatory decision, the rights offer of the GSP Finance Company has been rejected as the company has failed to comply with the corporate governance guideline regarding the appointment of required number of independent directors.

At the same time, the regulator has found dissimilarity between 'opening cash and cash equivalents' and 'closing cash and cash equivalents' for the year ended on December 31, 2010 and for the year ended on December 31, 2009 respectively.

So, the company's financial statements have not been prepared as per International Accounting Standards (IAS).

On the other hand, the regulator has rejected the rights offer of Dacca Dyeing and Manufacturing Company as the company has failed to comply with some prior requirements of rights issue.