BSEC rejects FSIBL’s proposal for rights issue

The capital market regulator has rejected First Security Islami Bank Limited’s (FSIBL) proposal to issue rights share.

In a filing with the Dhaka Stock Exchange (DSE) on Thursday, the company informed the matter to its investors.

According to DSE, the Bangladesh Securities and Exchange Commission (BSEC) rejected the company’s rights shares issue application due to its failure to form the Nomination and Remuneration Committee (NRC).

Furthermore, the bank failed to increase the number of shares outstanding for payment of stock dividend in 2021 and share price close to face value in August 2022.

Earlier in September 2021, FSIBL decided to increase its paid-up capital by issuing rights shares.

Following the decision, the bank applied for the issuance of rights shares at a ratio of 1R:2 (one right share against two ordinary shares). For this, the price of each share was fixed at Tk 10.