The Bangladesh Securities and Exchange Commission has formed a three-member committee to investigate into a National Bank move to purchase 50 flats worth Tk 55.57 crore.
The BSEC committee, comprised of its director Md Monsur Rahman, deputy director Mohammed Nazrul Islam and assistant director Md Bony Yeamin Khan, was formed on Sunday.
On October 17 this year, the NBL announced that its board of directors had
decided to purchase 50 flats having 74,970 square
feet (approximately) along with 50 car parking spaces in a 14-storey residential building with one basement at Mohammadpur in Dhaka.
An NBL official on Tuesday said, ‘The bank has postponed the decision [purchasing flats] for the time being. It is renegotiating with companies over loans against which the flats would be taken over.’
‘We are not aware of the BSEC’s move in this connection,’ he said.
The BSEC initiative came following a complaint submitted by an investor to the finance ministry that was later forwarded to the commission for further action.
The commission earlier issued two separate letters to the NBL seeking a number of documents regarding the purchasing, BSEC executive director Saifur Rahman told New Age on Tuesday.
Based on the documents submitted by the NBL, the commission found it logical to form an investigation committee for further digging into the issue, a BSEC official said.
Including the requirement of getting Bangladesh Bank’s permission in purchasing fixed assets and bar in acquiring fixed assets which exceeds 30 per cent of any banks paid-up capital, there was also another BSEC notification in place that bars any listed entity in purchasing assets worth 1 per cent or above of its tangible assets from any of its associate companies.
According to the BSEC notification issued on June 1, 2009, no issuer company shall, except with the approval of the general body of its shareholders, enter into any contract for the sale or purchase of assets of 1 per cent or above of the total tangible assets with any director of the issuer or any firm in which any director of the issuer is a partner or any private company of which any director of the issuer is a director or any public company, the managing agent, manager or director who is accustomed to act in accordance with the directions or instructions of any director of the issuer.
A BSEC official said that the value of the assets purchased would exceed the limit mentioned in the BSEC’s notification.
‘That’s why, the commission will scrutinise whether there was any association between the NBL and the developer companies,’ he said.
If any association between the entities or its directors is found, the NBL will be made guilty of breaching securities rules, the official said.
NBL managing director AFM Shariful Islam and deputy managing director MA Wadud could not be reached for comments.
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