Securities and Exchange Commission
SECURITIES
AND EXCHANGE COMMISSION
Quarterly Review
APRIL-JUNE 2003
A PUBLICATION OF THE SEC
Securities and Exchange Commission
10, Dilkusha Commercial Area
Dhaka-1000,
Phone: 9568101-2, 9561525
Fax: (88)-02-9563721
Website: http//:www.secbd.org
E-mail: secbd@bdmail.net
<mailto:secbd@bdmail.net>
SECURITIES AND EXCHANGE
COMMISSION
Quarterly Review
APRIL-JUNE 2003
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3 |
Corporate Finance : Capital Raising and Company Performance |
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4 |
IPO & Right Issues |
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5 |
Supervision & Regulation of Markets & Intermediaries |
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6 |
Registration |
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7 |
SEC Surveillance System |
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8 |
SEC Enforcement Action |
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9 |
Legal Services |
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10 |
New Acts/ Rules/ Regulations/ Amendments/ Orders/ Notifications |
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11 |
DSE & CSE Scenario |
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12 |
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CAPITAL MARKET NEWS
The Commission
SEC advice to the investors: The Securities and Exchange Commission(SEC) has advised all investors to be aware of
current financial position of companies, future prospect and activities of
concerned policy makers and the companies management before investing in their
securities. Not to invest based on rumor. SEC also requested to consider the
purchase price based on the company’s fundamentals.
DSE member directed to settle client`s dues: The Securities and Exchange Commission(SEC) has directed a member of DSE to settle its
dues with the clients by June 5, 2003 . The Commission asked Syed Tawfiq Hossain
Ali and Co (Membership No-49) to pay off the clients
money or return the shares to the clients of the brokerage house within the
said deadline and inform the Commission of its complaince
with proper documents by
SEC allowed
to be a party in Gachihata Aquaculture case : The Second Court of the
Assistant Judge ,
SEC appoints auditor for Metro Spinning Ltd: The Securities and Exchange
Commission has appointed auditor Hoda Vasi Chodhury and Co.,Chartered Accountants to audit the utilization of IPO
and pre-IPO funds of the Metro Spinning Ltd.
ICAB delegation calls on SEC Chairman: A three- member ICAB
delegation led by its president A K Golam Kibria, FCA, paid a courtesy call on Chairman of the
Securities and Exchange Commission Manir Uddin Ahmad ,FCA at his office .
SEC, CSE hold training on IAS: The Securities and Exchange Commission(SEC) and the Chittagong
Stock Exchange (CSE) jointly organized a two day training program on
International Accounting Standard(IAS) at CSE Conference Hall in
under the Asian Development Bank funded technical assistance project-`
Capacity Building of SEC and Market
Participants’.
ICMAB team meets SEC Chairman: A delegation of the
HSBC,STAN CHART obtain SEC registration: The Securities and Exchange
Commission has issued registration certificate to the Hongkong
and Shanghai Banking Corporation(HSBC) and the Standard Chartered Bank(STAN
CHART) to operate as security custodians for transactions of the foreign
portfolio investors.
SEC suggests setting up of speedy trial court: The Securities and Exchange
Commission(SEC) has suggested to the Government for
establishment of speedy trial court for disposal of the security related cases.
SEC holds investors education program: SEC holds a four-day
investors education program at SEC premise on June 21, 26, 29 and 30, 2003 to
help make investors aware of the securities laws and issues relating to the
stock market. A total of 30 investors participated in each program. The program
of
DSE
NDC delegation visits: A 26 member delegation of the
CSE
CSE revises commission, contract charges :
The Chittagong Stock
Exchange (CSE) has revised the rates of commission and contract charges payable
to the exchange by its members for their trade.
ICSMB training course on `Company Secretarial Practice’: The Institute of Chartered
Secretaries and Managers of Bangladesh (ICSMB) in association with the Chittagong Stock Exchange (CSE) Ltd organized a two- day
short Professional Training Course on the core issues of `Company Secretarial
Practice’ at CSE Conference Hall on 20th and 21st June,
2003.
MCI to pay $500 m fine for fraud: MCI , formerly WORLD COM, has agreed
to pay 500 million dollars to victims of accounting fraud under a settlement
with the US Securities and Exchange Commission.
US SEC fines 10 Wall Street titans $1.39b over research scandal: Ten of Wall Street`s most powerful firms will pay 1.39 billion dollars
in a final settlement of a massive scandal over biased stock research.
Citigroup, JP Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley are
on the list.
German court finds EM.TV managers guilty of share manipulation: The founders of former heads
of German media group EM.TV, a one-time star of the German Stock Exchange, were
found guilty of misrepresenting the company`s finance
with a view to manipulating the share price.
Morgan Stanley, Citigroup get license to invest in Chinese stocks: The Chinese Securities
Regulatory Commission issued licenses to Morgan Stanley and Citigroup, two US
banks status as qualified foreign institutional investors (QFIIs)
to enter China`s
stock market under a scheme of opening the door for large foreign
institutional investors.
NASD to sell American Stock Exchange: The National Association of
Securities Dealers had agreed to sell the American Stock Exchange for 110
million dollars to GTCR Golder Rauner,
a Chicago-based private equity firm.
US-SEC Reforming
shareholders` stake: The US-SEC is considering reforming the shareholders` election
process. One of the longest standing complaints among shareholders activists is
that the corporate board elections are rarely actual elections- in almost all cases, there are few contested races for directors and
little chance for minority shareholders to nominate directors. The US
Securities and Exchange Commission chairman William Donaldson has recently
said, ‘‘The time has come for a thorough review of the proxy rules and
regulations to ensure that they are serving the best interests of today`s investors.” The US-SEC has asked for a ‘‘top- to- bottom
review” of the rules. The new proposals regarding the election of public
company directors could be ready by the middle of this year.
Pakistan`s world-best
bourse bound for new highs: The Karachi Stock Exchange (KSE), the world`s top performing bourse in 2002 and Pakistan`s largest share market, is poised to break a new
record as it powers towards the momentous 3000 points level. After growing 112
percent in 2002 the KSE-100 index made history again last month by breaking
through its previous best of 2955. It closed at 2972.52.
INITIAL
PUBLIC OFFERING (IPO)
The Commission has accorded consent for publication of
Prospectus of the following companies during April -June 2003, the particulars
of which are furnished below:
Figure in Million Taka
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Name of
the Company |
Date of Approval/ Publication date |
Sponsors Equity |
Public Equity |
Total (6+7+8) |
Remarks (Issued at premium/par) |
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Local |
Foreign |
Total |
General Public |
Foreign placement |
Local placement |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
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Mutual Trust Bank Ltd. |
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325.00* |
-- |
325.00 |
125.00 |
-- |
250.00 |
375.00 |
At 25% Premium |
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Jago Corporation Ltd. |
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23.5125 |
26.4875 |
50.00 |
20.00 |
-- |
20.00 |
40.00 |
at par |
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Agni System Ltd. |
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30.00 |
-- |
30.00 |
30.00 |
-- |
20.00 |
50.00 |
at par |
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First Lease International Ltd. |
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40.0001 |
9.9999 |
50.00 |
30.00 |
-- |
20.00 |
50.00 |
at par |
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Standard Bank Ltd. |
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330.00 |
-- |
330.00 |
220.00 |
-- |
110.00 |
330.00 |
at par |
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One Bank Ltd. |
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306.00 |
-- |
306.00 |
196.98 |
-- |
97.02 |
294.00 |
at par |
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Bank Asia Ltd. |
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300.00 |
-- |
300.00 |
200.00 |
-- |
100.00 |
300.00 |
at par |
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Mercantile Bank Ltd. |
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319.765 |
-- |
319.765 |
213.19 |
-- |
106.575 |
319.765 |
at par |
* Including 10,00,000 shares issued at 25% premium.
CORPORATE FINANCE