Securities rule violations: Directors of Aman Feed, Regent Textile fined

Stock market regulator the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday fined each director of Aman Feed Limited and Regent Textile Mills Limited, sparing the independent and nominee directors, for violations of securities laws.

Each director of Aman Feed was fined Tk25 lakh and  that of Regent Textile Tk2 lakh.

The decision came at a commission meeting presided over by BSEC Chairman M Khairul Hossain held at its headquarters.

The penalized Aman Feed directors are Md Rafiqul Islam, Md Shofiqul Islam, Md Toufiqul Islam and Md Toriqul Islam, according to the company's website. 

On April 2015, the commission approved Aman Feed initial public offerings (IPOs). The company offloaded 2 crore shares and raised Tk72 crore. 

The IPO’s fund was not properly used by the directors and gave false information to the regulators. For this violation, each director of the company was fined Tk25 lakh.

The penalized Regent Textile directors are Md Yakub Ali, Md Yasin Ali, Salman Habib, Mashruf Habib and Tanvir Habib, according to the company's website. 

In 2015, Regent Textile collected Tk125 crore from the stock market through IPO to renovate its factory and start a new readymade garment project. But the RMG project has not been completed even after five years.

As per BSEC statement, Regent Textile failed to submit its financial statement for the 2016 and 2017 years in time and the companies had submitted false documents. For this violation, each director of the company was fined Tk2 lakh.

On Tuesday, the securities regulator also decided to warn Continental Insurance Ltd over violating securities rules.

It also decided to amend guidelines on corporate governance.