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NON-COMPLIANCE OF SECURITIES RULES

BESEC calls 20 listed cos for hearing today

Mostafizur Rahman | Published: 00:05, Apr 18,2018 | Updated: 23:29, Apr 17,2018

 
 

Bangladesh Securities and Exchange Commission has summoned top brass of 20 listed companies to appear before hearing today as the commission detected violation of securities rules by them.
On April 11, the commission, in the wake of reports by its enforcement and Dhaka Stock Exchange teams, decided to call them for appearing before a hearing today, said a BSEC official.
From the analysis of certain information, the BSEC enforcement had gathered a prima facie evidence that the companies breached the rules ‘deliberately’, he said.
According to the securities rules ‘the issuer of listed securities must make written report of its price sensitive information within thirty minutes of the decision on such information to the exchange and the commission.’
In connection with the rules, the officials of Baraka Power were summoned as
the company did not sent the PSI in connection with unaudited financial statements for the third quarter ended on March 31, 2016 within 30 minutes before of taking decision.
Doreen Power had also not mentioned the date and time of the decision taken by the board of directors in the meeting on July 4, 2017 in connection with allotment of ordinary shares in the PSI on the same day, breaching securities rules.
BSEC summoned top brass of Aamra Networks, Daffodil
Computers and Beach Hatchery as the regulator found deficiencies in their PSI submissions.
According to another securities rules, ‘the issuer of listed securities must notify the exchange and the commission in advance the date and time of its board of directors meeting specially called for consideration/adoption of its quarterly financial statements and for declaration of any entitlement for the shareholders before three working days of holding such meeting.’
Style Craft Limited and Dragon Sweater violated securities rules by not notifying the exchange and the commission in advance the date and time of its board of directors’ meeting for adopting un-audited first quarterly financial statements for the period ended September 30, 2017 and 2016 receptively before three working days.
Intech Online, Generation Next and Shurid Industries were also found violating the same rules.
BSEC executive director and spokesperson Saifur Rahman said that ‘the violations of securities rules by such companies proved their weak corporate governance.’
Besides, the watchdog also summoned the officials of Hamid Febrics, Khan Brothers, S. Alam Cold Storage, Agricultural Marketing Company (Pran), Legacy Footwear, AFC Capital, BMSL Investment, Meghna Condensed Milk Industries, Meghna Pet Industries and Hakkani Pulp as it detected several rules violations made by them.
The companies were asked to appear for hearing today with written explanation and supporting documents thereof, showing cause as to why appropriate action should not be taken by the commission against them, the officials said. 

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