The Bangladesh Securities and Exchange Commission on Tuesday rejected the rights issue applications of BRAC Bank and IFIC Bank as the banks did not apply for the rights issue properly.

The commission took the decision at a meeting presided over by its chairman M Khairul Hossain, a BSEC news release said.

The BSEC release said the commission did not consider the rights issue applications of BRAC Bank and IFIC Bank as their issues were not fully underwritten which is a violation of section 3(d) of Securities and Exchange Commission Rules-2006.

The board of directors of BRAC Bank on April 16 recommended one rights share against existing two shares at an issue price of Tk 20 including a premium of Tk 10.

The board of directors of IFIC Bank in 2012 decided to offer three rights shares against existing four shares at an issue price of Tk 20 including a premium of Tk 10.

The BSEC on Tuesday also fined Jalalabad Securities Limited Tk 3 lakh as it issued loans against consolidated customer account violating securities rules.