The Dhaka Stock Exchange board is likely to make a decision on Coppertech Industries’ listing today as the bourse’s management failed to do so due to a number of reasons including the expiry of listing time for the company.
The DSE on Sunday called an emergency board meeting for today to resolve the issue of Coppertech listing.
The DSE board on July 14 asked the bourse’s management to make a decision on Coppertech’s listing in line with the rules and regulations.
The management after assessing rules and regulations and finding various consistencies in Coppertech’s financial accounts could not make a decision about the company’s listing with the DSE.
DSE officials said that the management found that it had no authority to approve Copperetch’s listing as time for listing of the company ended on June 23.
According to the securities rules, listing of a company must be completed within 75 days of its initial public offering subscription.
The management found that the listing would breach the DSE listing regulations.
Earlier, the DSE chief regulatory officer sent a letter to BSEC mentioning a number of anomalies in Coppertech’s financial statements and asked necessary directive from the commission. The regulator is yet to respond to the letter.
The management also raised question about capital formation of Copperetch and informed the BSEC the matter with its findings.
The media reported that the company took fraudulent path by fabricating its financial accounts and making artificial paid-up capital. The allegations instigated Institute of Charterred Accountants of Bangladesh to investigate the matter, but it failed to complete the probe as Coppertech’s auditor declined to cooperate the ICAB.
Mentioning all the issues regarding Coppertech, the DSE sought more time and necessary directives from the BSEC. The BSEC is yet to reply to the request.
Without investigating the matters and responding to the DSE findings, the commission directed the DSE to pay IPO subscription money to the company.
One of the DSE board members at the previous board meeting had raised concern that investors’ money might be at risk, DSE officials said.
But, giving approval to a company mired in controversies would be more dangerous for investors, market experts said.
The securities rules protect investors and the rules make the company bound to refund the money to the investors, they said.
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