SEC

Quarterly Review

                           April-June  2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities and Exchange Commission

Bangladesh

 

         

                       

 

      

SECURITIES AND EXCHANGE COMMISSION

Quarterly Review

APRIL-JUNE 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A  PUBLICATION  OF THE SEC

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities and Exchange Commission

Jiban Bima Tower ( Floor 15, 16 & 20 )

10, Dilkusha Commercial Area

Dhaka-1000, Bangladesh

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

 

                                             

 

C O N T E N T S

 

 

TOPIC                                                                                                         PAGE

   

1

Capital Market News

 

2

Other Market Information

 

3

Corporate Finance : Capital Raising and Company Performance

 

4

IPO & Right Issues

 

5

Supervision & Regulation of Markets & Intermediaries

 

6

Registration

 

7

SEC Surveillance System

 

8

SEC Enforcement Action

 

9

Legal Services

 

10

New Acts/ Rules/ Regulations/ Amendments/ Orders/ Notifications

 

11

DSE & CSE Scenario

 

12

Bangladesh Capital Market Summary

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                 

                                            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 June 7, 2003.

 

SEC allowed  to be a party in Gachihata  Aquaculture case : The Second Court of the Assistant Judge ,Dhaka has allowed the Securities and Exchange Commission(SEC) to be a party in Gachihata Aquaculture case to act for the listed company for the first time in its history to protect  the investors interest.

 

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 Chittagong on 12 and13 April, 2003.

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 Institute of Cost and Management Accounts of Bangladesh headed by its president Md. Abdur Rashid, FCMA, called on SEC Chairman Manir Uddin Ahmed, at his office.

 

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 June 26, 2003 was reserved for officials bank, and the merchant bankers.

 

 

 

 

 

                                                                 DSE

 

NDC delegation visits: A 26 member delegation of the National Defence College led by Joint Secretary A K M Kamal Uddin visited Dhaka Stock Exchange(DSE) as part of the academic course.

 

 

 

                                                                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.     

 

 

 

 

 

 

 

 

 

 

 

 

OTHER MARKET INFORMATION

 

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.

 

Vietnam bourse opens to foreign investment: Vietnam has decided to open its stock exchange to foreign firms established in the country in the hope of boosting growth since the market was established, nearly three years ago, by maintaining certain criteria.

 

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

 

Name of the Company

 

Date of Approval/ Publication

date

 

Sponsors Equity

Public Equity

 

 

Total (6+7+8)

 

Remarks (Issued at premium/par)

Local

Foreign

Total

General Public

Foreign placement

Local placement

1

2

3

4

5

6

7

8

9

10

Mutual Trust Bank Ltd.

01/04/03

05/04/03

325.00*

--

325.00

125.00

--

250.00

375.00

At 25%

Premium

Jago Corporation Ltd.

25/06/03

26/06/03

23.5125

26.4875

50.00

20.00

--

20.00

40.00

at par

Agni System Ltd.

26/06/03

27/06/03

30.00

--

30.00

30.00

--

20.00

50.00

at par

First Lease International Ltd.

28/06/03

29/06/03

40.0001

9.9999

50.00

30.00

--

20.00

50.00

at par

Standard Bank Ltd.

28/06/03

29/06/03

330.00

--

330.00

220.00

--

110.00

330.00

at par

One Bank Ltd.

28/06/03

29/06/03

306.00

--

306.00

196.98

--

97.02

294.00

at par

Bank Asia Ltd.

28/06/03

29/06/03

300.00

--

300.00

200.00

--

100.00

300.00

at par

Mercantile Bank Ltd.

29/06/03

30/06/03

319.765

--

319.765

213.19

--

106.575

319.765

at par

 

* Including 10,00,000 shares issued at 25% premium.

 

CORPORATE  FINANCE

Company Performance (AGM & Dividend)

April – June 2003

 

Sl No.

Name of the Company

Date of AGM

Rate of Dividend

               Banks

01.

Al-Arafah Islami Bank Limited

17.04.2003

20%

02.

United Leasing Company Limited

24.04.2003

50%

03.

Uttara Finance & Investment Limited

18.05.2003

25%

04.

Industrial Development Leasing Company Limited

27.05.2003

30%

             Engineering

05.

Singer Bangladesh Limited

05.05.2003

85%

06.

Bengal Steel Works Limited

31.05.2003

Nil

07.

Rangpur Foundry Limited

26.06.2003

16%

08.

Monno Jute Stafllers Limited

26.06.2003

20%

09.

Eastern Cables Limited

28.06.2003

10%

10.

Bangladesh Lamps Limited

28.06.2003

20%

11.

Aziz Pipes Limited

30.06.2003

Nil

             Food & Allied

12.

Eastland Camellia Limited

28.04.2003

10%

13.

National Tea Company Limited

28.04.2003

15%

14.

Rabeya Flour Mills Limited

25.06.2003

Nil

15.

Beximco Fisheries Limited

26.06.2003

5%

16.

Modern Industries (Bangladesh) Limited

26.06.2003

Nil

17.

Bengal Biscuits Limited

30.06.2003

Nil

18.

British American Tobacco Bangladesh Co. Ltd.

30.06.2003

110%

             Fuel & Power

19.

Padma Oil Company Limited

29.05.2003

50%

20.

Eastern Lubricants Blenders Limited

05.06.2003

25%

             Textile

21.

CMC-Kamal Textile Mills Limited

03.05.2003

10%*

22.

Square Textiles Limited

25.05.2003

32%

23.

Monno Fabrics Limited

25.06.2003

5%

24.

Arbee Textiles Limited

28.06.2003

Nil

25.

Beximco Knitting Limited

28.06.2003

5% (Bonus)

26.

Beximco Textiles Limited

28.06.2003

10% (Bonus)

27.

Beximco Denims Limited

28.06.2003

10% (Bonus)

28.

Safko Spinnings  Mills Limited

30.06.2003

5%

29.

Padma Textile Mills Limited

30.06.2003

5% plus,

10% (Bonus)

 

* For the public shareholders only

 

 

             Pharmaceutical & Chemical

30.

Glaxo SmithKline Bangladesh Limited

26.05.2003

40%

31.

The Ibn Sina Pharmaceuticals Industries Limited

13.06.2003

20%

32.

Wata Chemicals Limited

19.06.2003

13%

33.

Beximco Pharmaceuticals Limited

24.06.2003

5%

34.

Reckitt Benckiser (Bangladesh) Limited

26.06.2003

15%

35.

Beximco Infusions Limited

26.06.2003

Nil

36.

Rahman Chemicals Limited

28.06.2003

Nil

37.

Renata Limited

29.06.2003

50%

38.

Beximco Synthetics Limited

30.06.2003

5%

               Paper & Printing

39.

Padma Printers  and Color Limited

26.06.2003

Nil

40.

Paper Processing & Packaging Limited

30.06.2003

3%

              Services & Real Estate

41.

Shinepukur Holdings Limited

24.06.2003

Nil

              Cement

42.

Meghna Cement Mills Limited

05.06.2003

25%

43.

Chittagong Cement Clinker Grinding Co. Ltd.

24.06.2003

5%

              Miscellaneous

44.

Apex Footwear Limited

17.04.2003

10%

45.

Sino Bangla Industries Limited

24.04.2003

10%

46.

Information Services Network Limited

28.05.2003

10.50%

47.

Himadri Limited

23.06.2003

10%

48.

GQ Ball Pen Industries Limited

24.06.2003

48%

49.

Bata Shoe Company (Bangladesh) Limited

26.06.2003

150%

50.

Bangladesh Export Import Company Limited

26.06.2003

7.50%

51.

InTech Online Limited

26.06.2003

10%

52.

Bangladesh Online Limited

30.06.2003

15%

              Insurance

53.

Phoenix Insurance Company Limited

29.04.2003

20%plus, 5% (B)

54.

United Insurance Company Limited

07.05.2003

25%

55.

Reliance Insurance Company Limited

31.05.2003

30%

56.

Green Delta Insurance Company Limited

05.06.2003

35%

57.

Bangladesh General Insurance Company Limited

12.06.2003

20%

58.

Pragati Insurance Company Limited

19.06.2003

20% (C), 25% (B)

59.

Eastland Insurance Company Limited

25.06.2003

16%

60.

Peoples Insurance Company Limited

26.06.2003

27%

61.

Prime Insurance Company Limited

28.06.2003

12%

62.

Pioneer Insurance Company Limited

30.06.2003

15%

 

 

Right Issue

 

 

During the quarter the following three companies have received conditional consent of the Commission for right issue:

 

Sl No.

Name of the Company

Amount of rights offer

Condition

01.

The Oriental Bank Limited (former Al-Baraka Bank Bd. Limited )

TK 259.553 million at par and at 1:1 ratio basis (one new share for one existing share)

 

The bank has to submit tax clearance certificates of some of its directors to the Commission. The sponsors/directors of the bank also has to take-up the unsubscribed shares of Government and general shareholders.

 

02.

Al-Arafah Islami Bank Limited

TK 253.00 million at par and at 1:1 ratio basis (one new share for one existing share)

 

The bank has to submit tax clearance certificates and clean/Nil CIB reports on some of its directors.

 

03.

Islami Bank Bangladesh  Limited

TK 1280.00 million at par and at 1:2 ratio basis (two new shares for one existing share)

The bank has to submit tax clearance certificate, duty clearance certificate and clean CIB report on some of its directors.

 

 


Capital Raising

 

During April – June 2003 the following companies have been accorded consent under the Securities and Exchange Commission (Capital Issue of Public Limited Company) Rules, 2001 for raising capital:

 

Sl No.

Name of Company

Amount of Capital

(million taka)

Type of Security

1.

One Bank Limited

68.7 (including premium)

Bonus Share

 

One Bank Limited

43.3

Ordinary Share

2.

Bank Asia Limited

25.9 (including premium)

Bonus Share

 

Bank Asia Limited

45.7

Ordinary Share

3.

Merchantile Bank Limited

29.7 (including premium)

Bonus Share

4.

Krishipannya Feeds Limited

25.0

Ordinary Share

5.

GSP Finance Company (BD) Limited

150.0

Debenture

6.

Premier Bank Limited

46.3 (including premium)

Bonus Share

7.

Standard Bank Limited

70.0

Ordinary Share

8.

ICB Capital Management Limited

40.0

Ordinary Share

9.

Sikder Food Products Limited

3.1

Bonus Share

 

Sikder Food Products Limited

1.5

Ordinary Share

(Loan converted to capital)

 

Sikder Food Products Limited

0.5

Ordinary Share

10.

Samon-LK Electronics Company Ltd.

199.4

Ordinary Share

 

Samon-LK Electronics Company Ltd.

50.0 (including premium)

Preference Share

11.

Lafarge Surma Cement Limited

2806.0

Ordinary Share

12.

ICB Asset Management Company Ltd.

30.0

Ordinary Share

13.

Delta Brac Housing Finance Corporation Ltd.

1000.0

Zero Coupon Bond

14.

International Leasing & Financial Services Ltd.

21.5 (including premium)

Bonus Share

                                                                                                                      

 

 

 

 

 

 

 

 

 

 

SEC SURVEILLANCE SYSTEM

Surveillance:

 

To ensure transparency and accountability of the Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. through on line surveillance software & non-trading version of work station by regular trade analysis and inspection, the SEC surveillance staff time to time informs the top management of the Commission about the market condition and discuss with the management of the respective issue, if necessary. At the end of the trading, a daily trade report pointing out any highlights or abnormal activity found during the trading is prepared and submitted to the chairman and the members of the Commission. 

 

Analysis of Trading Data:

 

Regular post trading analysis has been continuing at SECsurveillance department. Relevant data and trading information are regularly collected from the stock exchanges on which review, analysis and calculation are done. The purpose of this post trading analysis is to find out the unusual behavior and irregularities of trades. If any abnormal trend or volatility in terms of turnover and price movement is noticed, a primary inspection is then conducted in order to ascertain the reason behind such volatility. If anything is suspected wrong, the matter is referred to top management for decision. SEC gets information or data from the surveillance department of DSE and online surveillance software of CSE & DSE, and analise for next course of action. In the referred period SEC’s surveillance team visited 4 (four) brokers of DSE & and 2 (two) brokers of CSE to examine books & records in respect of Mark BD, Square Textile & Southeast Bank issues.

 

 

 

 

SEC ENFORCEMENT ACTION

 

The following is the list of enforcement actions taken against registered stock-dealers, stock-brokers, issuer companies and or its directors, various institutions and individuals by the Commission during the period of April – June 2003 for reasons appearing against their names.

 

(A) Brokerage House: Penalized/License cancellation and or suspension/Appeal/Review/Directives issued

 

Sl. No.

Date

Name of the Brokerage House

Nature of default/Appeal

Commission’s Action/Decision

1

24.05.03

Syed Tawfiq Hossain Ali & Co.

(DSE Member No. 49)

 

 

 

 

 

 

Complaints from the customers for non-delivery of shares and non-payment of money by Dhaka Stock Exchange dealer Syed Tawfiq Hossain Ali & Co. (DSE Member No. 49).

Directive issued to Syed Tawfiq Hossain Ali & Co. (DSE Member No. 49) under section 20A of the Securities and Exchange Ordinance, 1969 to deliver the shares and to make due payments within 5 June 2003 and intimate the Commission in writing with proof by 7 June 2003 that above mentioned directive is complied with.

 

2

07.06.03

Syed Tawfiq Hossain Ali & Co. (DSE Member No. 49).

Request for allowing two months to comply with the Commission’s directive (to deliver shares and to make due payments) dated 24 May 2003 by Dhaka Stock Exchange dealer Syed Tawfiq Hossain Ali & Co. (DSE Member No. 49).

 

Time  extended up to 31 July 2003 to comply with the Commission’s directive No SEC/ Enforcement/171/2003-85 dated 24 May 2003.

 

 

(B) Brokerage House: Warned

 

Sl. No.

Date

Name of the Brokerage House

Nature of default/Appeal

Commission’s Action/Decision

1

23.04.03

Globe Securities Ltd. (DSE Member No. 189).

 

Violation of rule 4 and 8 of the Securities and Exchange Rules, 1987  (submitting sell offers of ten clients using same client code) by Dhaka Stock Exchange dealer Globe Securities Ltd. (DSE Member No. 189).

 

Letter issued with warning to comply with all securities laws in future.

2

24.05.03

Maitrayee Biswas & Co. (DSE Member No. 14)

 

Violation of rule 11 of the Securities and Exchange Commission (Stock Dealer, Stock Broker & Authorized Representative) Rule, 2000 (violation of code of conduct) by Dhaka Stock Exchange dealer Maitrayee Biswas & Co. (DSE Member No. 14)

 

Letter issued with warning to comply with all securities laws in future.

 

(C) Issuer Company: Directors Penalized/Appeal/Review

 

Sl. No.

Date

Name of the director of the Issuer Company

Nature of default/Appeal

Commission’s Action/Decision

1

28.04.03

Mr. A. K. M. Rahmatullah

Managing Director

Apex Tannery Ltd.

Violation of Commission’s Notification No. SEC/SRMID/2000-953/1950 dated 24th October, 2000, Gazetted on 7th November, 2000 and Notification No, SEC/SRMID/2000-985/2248/Pro-02/1 dated 19th December 2000, Gazetted on 25th February 2001 (non disclosure of price sensitive information) by Apex Tannery Limited.

Penalty of Taka 1.00 lac imposed on Mr. A. K. M. Rahmatullah, Managing Director of Apex Tannery Ltd.

 

2

28.04.03

Mr. Md. Nurul Alam

Ex Director, J. H. Chemical Industries Ltd.

Appeal against Commission’s order dated 17th June, 2002 imposing penalty of Taka 2.00 lacs (and also additional penalty of Taka 10,000 per day if default continuous after 60 days) on Mr. Md. Nurul Alam, Ex Director, J. H. Chemical Industries Ltd.

Appeal allowed and penalty withdrawn.

 

 

 

 (D) Issuer Company: Directors Warned

 

Sl. No.

Date

Name of the directors of Issuer Company

Nature of default/Appeal

Commission’s Action/Decisuion

1

23.04.03

Mr. K.M. Mahmudur Rahman, Managing Director

Highspeed Shipbuilding & Heavy Engineering Co. Ltd.

 

Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25th March 2001, Gazetted on 16th April 2001 (not submitting report of intention to buy shares of Highspeed) by Mr. K.M. Mahmudur Rahman, Managing Director Highspeed Shipbuilding & Heavy Engineering Co. Ltd.

 

Letter issued with warning to comply with all securities laws in future.

2

23.04.03

Sandhani Credit Co-operative Society Ltd.

 

Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25th March 2001, Gazetted on 16th April 2001 (not submitting report of intention to buy shares of Samorita Hospital) by Sandhani Credit Co-operative Society Ltd.

 

Letter issued with warning to comply with all securities laws in future.

3

23.04.03

Mr. Abdul Matlub Ahmed, Managing Director Niloy Cement Industries Ltd.

Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25th March 2001, Gazetted on 16th April 2001 (not submitting report of intention to buy shares of Niloy Cement Industries Ltd.) by Mr. Abdul Matlub Ahmed, Managing Director Niloy Cement Industries Ltd.

 

Letter issued with warning to comply with all securities laws in future.

 

 

 

(E) Issuer Company: Warned

 

Sl. No.

Date

Name of the directors of Issuer Company

Nature of default/Appeal

Commission’s Action/Decision

1

27.04.03

Tamijuddin Textile Mills Ltd.

 

Violation of rule 12, Sub-rule (3A), Sub-rule 4, Sub-rule 6 of the Securities and Exchange Rules, 1987 (not submitting financial statement for 30th June 2001 in time) by Tamijuddin Textile Mills Ltd.

 

Letter issued with warning to comply with all securities laws in future.

2

24.05.03

Padma Cement Ltd.

 

Violation of Commission’s Notification No. SEC/SRMI/2000-953/1950 dated 24 October 2000 and gezetted on 07/11/2000 and Notification No. GmBwm/ GmAviGgAvBwW/2000-985/2248/cÖ-02/1 ZvwiL 19 wW‡m¤^i 2000Bs gezetted on 25/02/2001 (non-disclosure of price sensitive information) by Padma Cement Ltd.

 

Letter issued with warning to comply with all securities laws in future.

 

(F) Issuer Company: Directives/ Order Issued

 

Sl. No.

Date

Name of the Issuer Company

Nature of default

Commission’s Action/Decision

1

18.06.03

German Bangla J. V. Food Ltd.

Complaints against past & present Management of German Bangla J. V. Food Ltd. for misusing IPO fund.

Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 imposing restriction on sell or transfer of shares of all Sponsors, Directors, Managing Director and Chairman without Commission’s approval.

 

 

(G) Stock Exchanges: Miscellaneous

 

Sl. No.

Date

Name of the Exchange

Nature of default

Commission’s Action/Decision

1

12.05.03

Dhaka Stock Exchange Ltd.

Non payment of client’s money and non delivery of share by Dhaka Stock Exchange dealer Syed Tawfiq Hossain Ali and Company (DSE Member No. 49)

 

Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to Dhaka Stock Exchange Ltd. to freeze membership.

 

 

 

 

Summary of the Enforcement action taken for the period April– June 2003

 

 

Nature of enforcement action taken

Number of cases

                                   (A) Against Brokerage House

Warned

2

Directives/Order Issued/Appeal rejected and Miscellaneous

2

Total

4

                                     (B) Against Issuer Company and its directors

Directors penalized

1

 Warned

5

 Directives/ Order Issued/Appeal rejected and Miscellaneous

2

Total

8

                                     (C) Others

Stock Exchanges (Directives Issued)

1

Total

1

Total = A+B+C= (4+8+1)

13

 

 

 

 

SUPERVISION & REGULATION OF MARKETS AND INTERMEDIARIES

                                                        

                                                APRIL –JUNE  2003

 

       Status of complaints received during the period:

 

         Listed Companies

Nature of Complaints

Received during the quarter

   (No.)

Previous

Pending

 

   (No.)

Total

 

 

(No.)

Resolved

During the quarter (No)

Referred for enforcement action (No.)

Under process

(No.)

Non-payment or delay in payment of declared dividend

     

      02

 

07

 

09

 

03

 

00

 

06

Non-payment or delay in payment of interest of Debenture

     

      00

 

04

 

04

 

00

 

00

        

      04

Claim of dividend against lost shares

 

     00

 

00

 

00

 

00

 

00

 

00

Regarding transfer of shares

 

     00

 

 

 

00

 

00

 

00

 

00

 

00

Total

     02

11

13

03

00

10

 

 

           Broker/Dealer

 

Nature of Complaints

Received

during the quarter (No.)

Previous

Pending

   (No.)

Total

(No.)

Resolved

during the quarter (No.)

Referred for enforcement action (No.)

Under process

(No.)

Regarding non delivery of shares

 

     03

 

  

   03

 

06

 

 

04

 

 

00

 

02

Regarding non refund of clients money

 

     03

 

   

   07

 

10

 

03

 

00

 

07

 

Regarding non-payment ofIPO deposit

    

 

     01

 

 

     00

 

 

01

 

 

00

 

 

01

 

 

00

 

 

 

Total

    07

    10

17

07

01

09

 

 

 

 

r                                                                    REGISTRATION

 

Renewal of Stockbroker/Stock Dealer Registration Certificate:

During the quarter April-June, 2003, 30 members of Dhaka Stock Exchange Ltd. and 16 members of Chittagong Stock Exchange Ltd. have got their registration certificates renewed. Among these, 33 certificates are stock dealers’ and 13 are stock brokers’. Besides, one authorized representative registration certificate of DSE has been renewed in the period.

 

Issuance of Stock broker/Stock dealer Registration Certificate:

During the period, SEC has issued stock broker registration certificates to the following 5 members of Dhaka Stock Exchange Ltd. with due approval of the Commission as per the Securities and Exchange Commission (Stock Dealer, Stock Broker & Authorized Representative) Rules, 2000, as amended:

 

Serial No.

Name of the Broker/Dealer

Address

Membership

No.

Issue Date of Certificate

1.

C-Mart Securities Ltd.

Room No. 625, DSE Annex Building, 9/E Motijheel C/A, Dhaka-1000.

DSE-183

19.05.2003

2.

M, Securities Ltd.

Room No. 434 (3rd  Floor), DSE Annex Building, 9/E Motijheel C/A, Dhaka-1000.

DSE-44

26.05.2003

3.

Brotherhood Securities Ltd.

797, South Shajahanpur , Dhaka-1217.

DSE-109

27.05.2003

 

 

 

Issuance of Registration Certificate to Securities Custodians:

 

As per the Securities and Exchange Commission (Security Custodial Services) Rules, 2003, SEC has issued securities custodian registration certificate to the following foreign commercial banks during the period:

 

 

Name of the Securities Custodian

Date of issuance of certificate

The Hong Kong and Shanghai Banking Corporation Ltd. (HSBC)

17.06.2003

Standard Chartered Bank

19.06.2003

 

 

 

 

Permission to act as Trustee and Custodian of Mutual Funds:

 

During  the period, Investment Corporation of Bangladesh (ICB) has obtained permission from the Commission under the Securities and Exchange Commission (Mutual Fund) Rules, 2001 to act as Trustee and Custodian of ICB AMCL First Mutual Fund and ICB AMCL Unit Fund.

 

Issuance of Mutual Fund Registration Certificates:

 

 

During April – June 2003, SEC has issued registration to the following Mutual Funds as per the Securities and Exchange Commission (Mutual Fund) Rules, 2001

 

Serial No.

Name of the Fund

Date of registration

Type of the Fund

01.

ICB AMCL First Mutual Fund

24.05.2003

Close-end Mutual Fund

02.

ICB AMCL Unit Fund

03.06.2003

Open-end Mutual Fund

 

Approval of Prospectus of Mutual Funds with Consent to publish for public subscription:

 

The Commission has approved prospectus of ICB AMCL First Mutual Fund and ICB AMCL Unit Fund with consent to publish for public subscription on 4th and 14th June 2003 respectively.

 

 

Profit-Loss Sharing Scheme:

 

 

During the quarter, the Commission has accorded permission to introduce profit- loss sharing scheme in portfolio accounts with Arab Bangladesh Bank Ltd., a registered Merchant Bank.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LEGAL SERVICES

 

 

Court Cases of SEC
 
A Total of 69 cases filed by or against SEC are pending in different courts. Name of the courts are given below along with the number of pending cases with each Court: 

 

Sl. No.

Name of the court 

Number of Cases

01.

Supreme Court of Bangladesh

Appellate Division

04

High Court   Division

35

02.

5th Sub Judge Court, Dhaka.

04

03.

6th Asst. Judge Court, Dhaka.

02

04.

1st Add. Asst. Judge Court, Dhaka.

01

05.

Chief Metropolitan Magistrate Court, Dhaka.

04

06.

Metropolitan Session Judge Court, Dhaka.

03

07.

General Certificate Court, Dhaka.

16

Total Cases

69

 

Share Scam Cases, 1996

 

Out of total 15 cases, 3 cases are now pending before the Appellate Division, 6 cases before the High Court Division of the Supreme Court, and rest 6 cases are pending before the Metropolitan Session Judge Court, Dhaka.


New  ACTS/RULES/REGULATIONS/AMENDMENTS/ORDER/NOTIFICATIONS

 

 Securities and Exchange Commission

Jiban Bima Tower

10, Dilkusha (15th ,16th  and 20th  Floor)

Dhaka – 1000

 

NOTIFICATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             DSE & CSE  SCENARIO

 

Capital Market:  As of 30th June 2003 the total issued capital of all listed securities of Dhaka Stock Exchange was TK. 36081 million (US$ 622 million) which was TK.35539 million (US$ 613 million) on 31st March 2003. In Chittagong Stock Exchange the total issued capital on 30th June 2003 was TK.31906.73 million (US$ 545.41million) which wasTK.31832 million(US$ 344 million) on 31st March 2003.

 

Stock Market Operation:  During April-June 2003 quarter, the total turnover in Dhaka Stock Exchange was 159.008 million of securities while the total amount traded in the exchange during the same period was TK.5280.41 million (US$ 91.04million)

 

During April-June 2003 quarter the total turnover in Chittagong Stock Exchange was 44.68 million of securities while the total amount traded in the exchange during the same period was TK.2602.17 million (US$ 44.86 million).

 

Market Capitalization: Total market capitalization of all securities listed with the Dhaka Stock Exchange was TK. 72998 million(US$ 1259 million) as on 30th June 2003 compared toTK.64565 million(US$ 1113 million) as on 31st March 2003.

 

In the Chittagong Stock Exchange, total market capitalization of all securities was TK.60208.61 million (US$ 1029.21 million) as on 30th June 2003 compared to TK.55452 million(US$ 948 million) as on 31st March 2003.

 

 

Weighted Average Share Price Index:  DSE weighted average share price index stood at 823.14 on 30th June 2003 compared to 822.45 on 31st March 2003.CSE all share price index stood at 1841.2458 on 30th June 2003 while it was 1840.9978 on 31st March 2003. The index bases are 1oo and 1000 for DSE and CSE respectively.

(1 US$ =TK. 58.00                 For April-June 2003 quarter)

 

 

                         BANGLADESH CAPITAL MARKET SUMMARY

As on 30 June 2003           

 

                                             

 

Indicators

Dhaka Stock Exchange

  Chittagong Stock   Exchange

 

No. of companies

241

172

No. of mutual funds

10

10

No. of debentures

9

3

Total No. of Listed Securities

260

185

 

     Figures in million

No. of shares of all listed companies

972.72

822.6

No.  of certificates of all listed mutual funds

72.25

72.25

No. of debentures of all listed debentures

0.635

0.113

Total No. of Tradable Securities g\

         1045.60

894.963

                                                                                                                      Figures in million

Issued capital of all companies  TK.

                                                               US$                             

35242

608

31507.87

538.6

Issued capital of all mutual funds  TK.

                                                        US$

295

5

 

295

5.04

Issued debentures                            TK.

                                                         US$

544

9

103.86

1.78

Total issued capital                         TK.

                                                        US$

          36081

          622

31906.73

545.41

                       Figures in million    

Total Market capitalization                        TK.

                                                                   US$

       72998

        1259

              60208.61

               1029.21

 

Weighted average share price index                        

          823.14

                1841.2458

 

 

 

1

 

 

 

 

DSE OPERATIONAL STATISTICS

April-June 2003

Trading

Month

Index

(Weighted

 Average)

Market Capitalization

in Million

No.

of Trading

Days

Turnover of Securities in Million (No.)

Traded Amount

in   Million

Monthly

Daily

Average

Monthly

Daily

Average

April

822.58

Tk..67920.00

 US$1171.00

25

52.57

2.10

Tk. 1260.83

US$ 21.74

Tk.50.43

US$ 0.87

May

822.74

 Tk.68610.00

 US$1182.93

24

48.598

2.02

Tk.  1737.15

US$ 29.95

Tk. 72.38

US$ 1.25

June

823.14

 Tk.72590.00

US$1251.00

25

57.84

2.31

Tk. 2282.43

US$ 39.35

Tk. 95.10

US$ 1.64

Total

 

 

74

159.008

2.14

Tk 5280.41

US$ 91.04

Tk 72.64

US$ 1.25

 

CSE OPERATIONAL STATISTICS

                                                 April-June 2003

 

 

Trading

Month

Index

(Weighted

 Average)

Market Capitalization

in Million

No.

of  Trading

Days

Turnover of      Securities in  Million

       (No.)

Traded Amount

      in Million

 

 

 

 

 

Monthly

 Daily

Average

Monthly

Daily

Average

April

1841.0973

Tk.57791.69

US$996.41

25

12.09

0.48

Tk. 317.5

US$ 5.47

Tk. 12.70

US$ 0.219

May

1841.2357

Tk.58743.99

US$ 1012.83

24

17.8

0.74

Tk.  1407.66

US$ 24.27

Tk. 58.65

US$ 1.01

June

1841.2458

Tk. 60208.61

US$ 1038.08

25

14.79

0.59

Tk. 877.01

US$ 15.12

Tk. 35.08

US$ 0.60

Total

 

 

74

44.68

0.60

Tk 2602.17

US$ 44.86

Tk35.47

US$ 0.61

                                                                                                                                      

    *Index and Market Capitalization of the last trading day of the months have been considered  as  relevant   figures  of   respective  months.