The decision has been taken by the Bangladesh Securities and Exchange Commission (BSEC) to reconstruct the board of directors of Fareast Stocks and Bond because of the brokerage firm’s failure to maintain rules and regulations.
The decision was taken by the stock market regulator during a commission meeting held on May 30 at the BSEC headquarter with chairman Professor Shibli Rubayat Ul Islam in chair.
The BSEC has taken the decision to reconstruct the firm’s board of directors because of the company’s failure to follow directives, maintain discipline in the capital market, and protect the investors’ interests.
On the other hand, Exim Bank’s Mudaraba subordinated bond worth Tk 500 crore was approved by the BSEC at the commission meeting also.
The characteristics of the bond would be non-convertible, unsecured, and floating rate.
The company’s rate would be 2 per cent higher than that of the 6 months’ average profits of fixed deposits of shariah-based banks.
The bond will be issued to financial institutions, mutual funds, insurers, rural banks, organisations, trustees, and eligible investors through private placement.
Exim Bank, with the bank proceeds, will bolster its Tier-2 capital base. The face value of each unit is Tk 1 crore.
The Sena Kalyan Insurance Company is its trustee and Standard Chartered Bank the arranger.
The BSEC also decided to return to normal trading times from today. As banking hours have been extended, the BSEC decided to operate the stock market from 10:00am until 2:30pm.