BM Desk : Regent Textile Mills Limited has been ordered to repay Tk 90 crore by the Bangladesh Securities and Exchange Commission (BSEC) due to allegations of illicit IPO money investing. At the same time, the regulatory agency BSEC has resolved to fine the company’s five directors, including the managing director, Tk 20 crore each, for a total of Tk 100 crore, if it does not return the money on time.

Under the direction of BSEC Chairman Khandaker Rashed Maqsood, the decision was made at the 964th commission meeting, which was conducted on Tuesday, July 22. On Wednesday, July 23, BSEC Director and Spokesperson Md. Abul Kalam signed a press statement containing this information.

According to the notice, Regent Textile violated the provisions of the IPO approval letter by using 800 million 11 lakh taka (including interest) to buy 99 percent of the company’s subsidiary Legacy Fashion Limited. This investment has been viewed as being directly against the interests of the investors because it was not stated in the IPO plan.

Regent Textile will be required to reimburse the firm 900 million taka within 30 days due to this irregularity. Five directors of the company, including the managing director of Regent Textile Mills Limited, Salman Habib, Md. Yakub Ali, Md. Yasin Ali, Tanvir Habib, and Mashruf, will be fined for not returning or depositing the money within the allotted period.