The securities regulatory authority on Wednesday turned down the rights offer of LankaBangla Finance Limited for its failure to meet the securities rules concerned, said officials.
The officials of Dhaka Stock Exchange (DSE) said they received a letter from the Bangladesh Securities and Exchange Commission (BSEC) stating the rejection of the financial company.
The news posted on the website of Dhaka Stock Exchange on Wednesday said that the BSEC is not in a position to consider the application of LankaBangla Finance Limited for issuance of rights shares due to non-compliance of the BSEC Notification No. SEC/CMRRCD/2009-193/119/Admin/34 dated November 22, 2011.
According to sources, as the company has failed to comply with the condition of the Securities and Exchange Commission Rights Issues. One of its director, sources said, has failed to maintained the minimum holding of 2 percent shares in his possession.
According to the news posted on DSE website on October 26, 2016, the board of directors of LankaBangla Finance Limited decided to issue rights shares at the rate of 2:1 (i.e. one Rights share for every two shares) at an issue price of Tk. 10.00 per share subject to approval of shareholders and Regulatory Authorities.
The Shareholders of LankaBangla Finance Limited also approved issuance of right shares at the 9th Extraordinary General Meeting of the Company held early this year. The company which was listed on the stock market in 2006, is engaged in lease financing, term financing, factoring, auto loan, SME, deposit scheme, home loan and stock broking.