The Dhaka Stock Exchange management is likely to send back the issue related to listing decision over Coppertech Industries as rules do not permit it to approve listing of the company after 75 days of closure of its IPO subscription.
On July 11, the DSE board passed the listing decision to the management and directed the management to take decision in line with the rules and regulations.
The bourse’s management at a meeting on July 18 decided in principle to refer the listing decision to the board again, DSE officials said.
According to the securities rules, listing of a company must be completed within 75 days of its initial public offering subscription.
The share subscription of Coppertech closed on April 9 and the scheduled time for listing of Coppertech with the DSE expired on June 23 amid controversy over fabrication of the company’s financial statements. The bourse sought more time from the Bangladesh Securities and Exchange Commission for making a decision on the company’s listing, but the regulator is yet to respond to the request.
DSE officials said the management could not make any listing decision as no regulation allowed it to do so.
If the DSE approves listing of Coppertech now, it would be a serious violation of the securities rules, they said.
According to the demutualisation rules, if chief executive officer, any director or any committee member or officer of any stock exchange violates any rule consciously, the bourse might be fined Tk 10 lakh and the errant officer Tk 1 lakh and could be vacated from position.
A DSE director told New Age that if the management took listing decision breaching securities rule, it must be accountable before the DSE board.
There are allegations against Coppertech that it fabricated financial data and formed an artificial paid-up capital violating a number of rules including securities rules, company act and financial reporting act.
New Age on July 15 reported that the statements on share money deposit (money for selling shares) of the company displayed a number of unusual and suspicious transactions that raised question about the increase in pre-IPO paid-up capital of the company.
The Institute of Chartered Accountant of Bangladesh had moved to investigate the allegations, but it failed to complete the probe as the company’s auditor Ahmad and Akhtar denied to cooperate with the ICAB.
Later the ICAB decided not to renew the licence of the auditor due to its unusual response to its request in connection with the probe.
Market experts said it was discouraging that market regulator BSEC was yet to initiate an investigation into the allegations.
But the BSEC on June 30 instructed the DSE to remit IPO subscription money to the company’s bank accounts. The DSE board approved the BSEC instruction.
Market experts said that the move could put the investors’ money at risk.
The current commission headed by chairman M Khairul Hossain has been criticised for approving weak and little-known companies for raising funds from the capital market.
The poor IPOs have been one of the key reasons for the prolonged bearishness at the market.
Recently investors demanded an immediate resignation of Khairul for his failure in improving the market situation.
Market experts said it was not understandable why the regulators would have to list a company mired in controversies.
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