bdnews24.com :
Bangladesh’s capital market regulator, the SEC, has fined two listed companies for financial irregularities.
Argon Denims has been slapped a Tk 3 million fine for irregularities in using the capital raised through the initial public offering (IPO).
Salvo Chemicals, on the other hand, will have to pay Tk 500,000 for not using the IPO money.
A media statement from the regulators on Tuesday declared Argon Denims ineligible for raising capital over the next three years.
The SEC said the company had violated the Securities Act by not using the IPO money as per the prospectus and terms of the consent letter.
Salvo Chemicals, on the other hand, spent Tk 240 million of the Tk 260 million it raised through IPO but submitted documents to the SEC claiming it had spent the whole amount.
Moreover, the SEC said the company had spent Tk 22.1 million in cash instead of spending the amount through the banking channel.
