United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has imposed a total fine of Tk 2 crore 83 lakh on directors, managing directors, and senior officers of three listed companies for securities law violations, according to a press release issued on Thursday. The decisions were taken at the 1014th Commission meeting held on May 19, chaired by BSEC Chairman Khondoker Rasheed Maqsood. In the first case, the Commission fined a total of Tk 1 crore 40 lakh on seven directors and officers of Khan Brothers PP Woven Bag Industries Limited for providing false information in audited financial statements for the fiscal year ended June 30, 2023, in violation of securities laws. Among those penalised, Chairman Mohammed Enamul Kabir Khan, Managing Director Tofayel Kabir Khan, and three directors: Md. Ruhul Kabir Khan, Hazrat Ali, and Jarin Kabir Khan were each fined Tk 25 lakh. Chief Financial Officer Md. Azizul Zabber was fined Tk 10 lakh, while Company Secretary Tapan Kumar Sarker was fined Tk 5 lakh. The fines are to be treated as personal liabilities of the penalised individuals. In the second case, the Commission fined a total of Tk 8 lakh, Tk 1 lakh each on eight directors and current board members of Genex Infosys PLC for failing to pay a declared 3 percent cash dividend for the fiscal year ended June 30, 2024, within the stipulated timeframe, in violation of securities laws and regulations. Those fined include Chairman Mohammed Adnan Imam, Acting Managing Director ShahJalal Uddin, four directors including Chowdhury Fazle Imam, Prince Mojumder, Oracle Services PLC, and Nilofar Imam, along with the then-CFO and then-Company Secretary. In the third case, the Commission imposed fines totalling Tk 1 crore 35 lakh on seven directors and officials of Aftab Automobiles Ltd for failing to repay Tk 1,16,81,649.67 in outstanding cash dividends for the fiscal year ended June 30, 2024, out of a total declared dividend of Tk 7,85,95,464.68. Chairman Shafiul Islam and Managing Director Saiful Islam were each fined Tk 30 lakh, while Director Khaleda Islam, Director Sajedul Islam, and Director Farhana Islam were each fined Tk 20 lakh. The then-CFO was fined Tk 10 lakh and the then-Company Secretary Tk 5 lakh. The Commission also ordered the company to pay the outstanding dividend within 30 days of the order. In case of further default, an additional fine of Tk 10,000 per day will be imposed, and the company will not be absolved of its liability to pay the remaining dividends to investors. Separately, the Commission approved the appointment of focal point and deputy focal point officers at BSEC to coordinate a nationwide investment education and safe investment awareness campaign.

Asian stock markets mostly declined on Wednesday as rising bond yields and concerns over prolonged inflation linked to the Iran war continued to pressure investors and weaken the technology-driven market rally. Japan’s benchmark Nikkei 225 fell 1.2 percent to 59,804.41, while the yield on the country’s 10-year government bond remained near its highest level since 1997 at just under 2.8 percent. The US dollar slipped slightly against the Japanese yen, trading at 158.92 yen. Chinese markets also ended lower, with Hong Kong’s Hang Seng Index losing 0.7 percent to 25,607.67 and the Shanghai Composite Index declining 0.3 percent to 4,156.47. Australia’s S&P/ASX 200 dropped 1.3 percent, while South Korea’s Kospi lost 0.9 percent following a broad sell-off in the previous session. Taiwan’s Taiex index also edged down 0.4 percent. US futures showed little movement after Wall Street recorded losses on Tuesday. The S&P 500 fell 0.7 percent for its third consecutive decline, while the Dow Jones Industrial Average lost 0.6 percent and the Nasdaq Composite dropped 0.8 percent. Technology stocks continued to weaken after strong gains earlier driven by enthusiasm over artificial intelligence. Investors are increasingly concerned that many tech stocks have become overvalued. Market attention is now focused on chipmaker Nvidia’s upcoming quarterly earnings report, which investors believe could influence the future direction of technology stocks and the broader US market. Oil prices remained volatile amid uncertainty surrounding the Iran conflict and possible disruptions in the Strait of Hormuz, a key route for global oil shipments. US benchmark crude oil fell $1.04 to $103.11 per barrel in early Wednesday trading, while Brent crude dropped $1.11 to $110.12 per barrel. Meanwhile, rising bond yields continued to unsettle markets. The yield on the 10-year US Treasury climbed to 4.66 percent from 4.61 percent a day earlier, compared with below 4 percent before the Iran war began. Analysts say higher yields could increase borrowing costs for mortgages and major corporate investments, including AI data center projects, potentially slowing economic growth. Despite market concerns, several major US companies have continued to report stronger-than-expected earnings, supported by resilient consumer spending despite higher fuel prices and economic uncertainty.  

Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) will remain closed from May 25 to 31 in observance of Eid-ul-Azha holidays following the government's declaration of May 25 as an additional public holiday, the bourses said in a press release on Tuesday. The government's order extends the Eid-ul-Azha vacation period by one day, prompting DSE and CSE to adjust its trading calendar accordingly. However, in a notable deviation from the usual weekend schedule, both trading and official activities at the Exchange will remain fully operational on Saturday, May 23, and Sunday, May 24, as per regular office and trading hours, in compliance with the government directive. Normal trading and administrative operations are set to resume on Monday, June 1, following the extended holiday break. Market participants and investors are advised to plan their transactions accordingly ahead of the closure.

Dhaka Stock Exchange PLC (DSE) and Swisscontact Bangladesh signed a Memorandum of Understanding (MoU) on Sunday aimed at strengthening the SME sector in the capital market and advancing sustainable, inclusive economic development through the country's securities ecosystem. Senior officials from both organisations, including DSE Managing Director Nuzhat Anwar and Swisscontact Bangladesh Country Director Helal Hossain, were present at the signing ceremony. Nuzhat said mutual coordination and a clear roadmap had enabled swift implementation of the initiative, which she believes will play a pivotal role in developing the SME sector. She stressed the need for capacity building, corporate governance support, and compliance assistance to increase SME participation in the capital market. Swisscontact Bangladesh Country Director Helal Hossain noted that while SME companies are a key driver of Bangladesh's economy, they continue to face significant challenges related to financing, competitiveness, and compliance. He underscored the urgency of creating alternative financing and equity-based capital-raising opportunities for SMEs in the current economic climate, expressing hope that the partnership with DSE would serve as a catalyst in bringing promising SME enterprises into the capital market fold. Under the MoU, both organisations will collaborate across strategic sectors including readymade garments (RMG), healthcare, and agriculture. Joint programmes will also cover environmental, social and governance (ESG) standards, sustainability reporting, entrepreneurship development, financial inclusion, climate resilience, trade facilitation, and skills development. The two institutions will jointly conduct capacity-building programmes, awareness workshops, incubation support, and advisory activities to encourage broader capital market participation. Cooperation is also planned on developing sustainable finance instruments, including green bonds, sustainability-linked bonds, sukuk, and blended-finance models.

Bangladesh's key financial regulators convened on Wednesday at the Dhaka Stock Exchange PLC (DSE) to bolster the capital market's defences against money laundering and terrorist financing, underscoring growing concerns over illicit financial flows threatening investor confidence. The workshop titled “Stable Capital Market: Progress in AML/CFT Compliance and Risk Management” was jointly organised by the Bangladesh Financial Intelligence Unit (BFIU), the Bangladesh Securities and Exchange Commission (BSEC) and the DSE. Chaired by DSE General Manager and acting Chief Risk Officer Mohammad Shafiqul Islam Bhuiyan, the event brought together senior officials from all three institutions to assess implementation of anti-money laundering and counter-terrorist financing frameworks across the securities sector. In his welcome address, Shafiqul Islam warned that the capital market now faces layered risks, from money laundering and terror financing to cyber-enabled financial crimes, insider trading and market manipulation, all of which erode investor trust and undermine sound governance of the financial system. BSEC Additional Director Md Ohidul Islam, speaking as a special guest, stressed that effective implementation of the Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) framework is indispensable for building a transparent, resilient and trust-based capital market. He cautioned that illicit financial flows and laundering risks directly damage market integrity and pose a systemic threat to financial sector stability. BFIU Director Syed Kamrul Islam, the chief guest, called for clearer and more actionable AML/CFT guidance for capital market participants. A transparent, accountable and well-governed capital market, he said, plays a decisive role in attracting both domestic and foreign investors. AML/CFT guidelines enforce strict protocols to prevent money laundering and terrorist financing, primarily focusing on risk-based approaches (RBA), Customer Due Diligence (CDD), and transaction monitoring. Key requirements include identifying beneficial owners, conducting regular audits, reporting suspicious activities (STR/SAR), and complying with international standards, such as those from the Financial Action Task Force (FATF). The workshop comes as Bangladesh's capital market regulators face intensifying pressure to align with international financial integrity standards ahead of upcoming FATF-related assessments.  

The Bangladesh Securities and Exchange Commission (BSEC) has fined top officials of Fortune Shoes Limited over unpaid cash dividends and listing fees, while also taking several policy decisions at its 1,013th commission meeting. The meeting was held on Tuesday at the commission’s headquarters with BSEC Chairman Khondoker Rashed Maqsood in the chair, according to a press release issued on Wednesday. The commission said Fortune Shoes had declared a 10 percent cash dividend and a 5 percent bonus dividend for the financial year ended June 30, 2022. However, the listed company failed to disburse Tk 3.98 crore out of its total cash dividend payout of Tk 16.25 crore. The company also failed to pay Tk 18.29 lakh in listing fees to the Dhaka Stock Exchange for the previous three years until July 31, 2023. The commission directed the company to clear the unpaid cash dividend and listing fees within 30 days of the order. It also decided to impose financial penalties on responsible individuals for violating securities laws and harming investors’ interests. The fines must be deposited with the commission within seven days. Under the decision, Fortune Shoes Chairman Md Mizanur Rahman was fined Tk 5 crore. Directors Md Amanur Rahman, Robiul Islam and former director Md Khosrul Islam were each fined Tk 50 lakh. Managing Director Roksana Rahman was also fined Tk 50 lakh. Chief Financial Officer Jamil Ahmed Chowdhury was fined Tk 10 lakh, while former Company Secretary Riaz Uddin Bhuiya was fined Tk 5 lakh. In another decision, BSEC said if any listed company’s board is restructured by a primary regulatory authority and the reconstituted board jointly holds less than 30 percent shares, restrictions on capital raising through rights shares, bonus shares or similar measures will no longer apply. The commission also decided that listed banks under the ‘A’ category on stock exchanges will be allowed to maintain dividend accounts with their own banks. Besides, BSEC decided to continue organising the “BSEC Capital Market Journalism Excellence Awards and Fellowship 2026”, following last year’s initiative aimed at encouraging transparent, research-based financial journalism. The commission said the fellowship would help journalists enhance their knowledge of global financial markets, strengthen analytical skills and promote ethical reporting standards. Last year, BSEC introduced the programme for the first time and awarded nine journalists in print, electronic and online media categories.    

The Dhaka Stock Exchange (DSE) has cancelled the Trading Right Entitlement Certificate (TREC) of Sonali Securities Limited over violation of securities rules, the bourse said in a notice on Tuesday. DSE revoked TREC No. 261, issued in the name of Sonali Securities Limited, under Rule 7(3) of the Bangladesh Securities and Exchange Commission Rules, 2020, citing breach of Rule 3(2)(ga) of the same regulations. It urged all investors and clients of the company to immediately review the cash and securities balances in their respective accounts and settle any outstanding transactions without delay. DSE also called on investors, clients or other entities with pending claims, complaints or outstanding dues against Sonali Securities in connection with the cancelled TREC to submit written applications, supported by relevant documents, by May 21. Submissions may be sent to the Chief Regulatory Officer (Acting), DSE or filed online through the Customer Complaints Address Module.

The Bangladesh Securities and Exchange Commission (BSEC) has directed listed companies that failed to appoint female independent directors in line with the Corporate Governance Code, 2018, to complete the appointments by June 30 this year. The decision was disclosed on Sunday through a press release following a meeting held on April 29 with company secretaries of non-compliant listed firms at the commission’s headquarters in Agargaon. BSEC Executive Director Md Anwarul Islam presided over the meeting organised by the Corporate Governance Department. According to the regulator, legal action will be taken against companies that fail to comply after the June 30 deadline. BSEC said eligible candidates for the post may include women entrepreneurs, members of business bodies, corporate leaders, teachers of public and private universities, serving or retired government officials, professional degree holders and practising High Court lawyers. The commission made the appointment of at least one female independent director mandatory for listed companies through a gazette notification issued on April 29, 2024, after amending a provision of the Corporate Governance Code. Initially, firms were given one year to comply, while the deadline was later extended until December 31, 2025. According to updated information submitted by Dhaka Stock Exchange PLC, 163 listed companies have already appointed female independent directors, while 131 companies failed to meet the requirement within the stipulated timeframe.

Three banks lost their existing stock exchange category status on Wednesday as the Dhaka and Chittagong stock exchange downgraded them to the 'Z' category for failing to declare dividends for two consecutive years. Islami Bank Bangladesh PLC, Standard Bank PLC and SBAC Bank PLC were stripped of their respective standings: Islami Bank from 'A' category and the other two from 'B' category, effective Wednesday, in accordance with provision 1(a) of BSEC directive. Stock brokers and merchant bankers have been directed to refrain from extending loan facilities for the purchase of securities of all three banks with immediate effect, as per rule 11(8) of the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025. All three boards of directors have recommended no dividend for the year ended December 31, 2025. Islami Bank reported a consolidated earnings per share (EPS) of Tk 0.85, net asset value (NAV) per share of Tk 44.52 and net operating cash flow per share (NOCFPS) of Tk 26.18 for 2025, against Tk 0.68, Tk 44.36 and Tk 57.90 respectively in 2024. Its AGM is scheduled for June 25, with a record date of May 21. Standard Bank posted a consolidated EPS of Tk 0.72, NAV per share of Tk 16.94 and NOCFPS of Tk 11.37 for 2025, compared to Tk 0.74, Tk 16.63 and Tk 3.86 (all restated) in 2024. Its AGM will be held on July 30 with a record date of June 3. SBAC Bank recorded a consolidated EPS of Tk 0.01, NAV per share of Tk 13.61 and NOCFPS of Tk 0.20 for 2025, against Tk 0.14, Tk 13.49 and Tk 7.62 respectively in the previous year. Its AGM is set for June 15 via a hybrid system, with a record date of May 20. Trading in the shares of all three companies on Wednesday carried no price limit following their corporate declarations, though floor prices remain applicable. Under BSEC policy, the 'Z' category encompasses companies that have failed to hold their AGM when due, failed to declare any dividend based on annual performance, remained non-operational for more than six months, or whose accumulated losses exceed paid-up capital after adjustment of revenue reserves.

Bangladesh's both stock exchanges began the week on a buoyant note Sunday, with benchmark indices on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) closing higher as overall turnover picked up noticeably from the previous session. The DSE's principal index, the DSEX, gained 17 points by the close of trading, while the blue-chip DS30 index added 11 points. The Shariah-based DSES, however, bucked the trend, edging down 1 point. Turnover on the DSE rose by nearly Tk 100 crore from the preceding session, with shares and units worth Tk 982 crore changing hands against Tk 884 crore recorded in the last trading day. Despite the headline index gains, declining issues outnumbered advancers. Of the stocks traded, 172 companies shed value while 157 advanced and 62 remained unchanged. In the block market, shares of 39 companies worth Tk 22 crore were traded, with Apex Spinning & Knitting Mills Ltd topping the segment at Tk 5 crore. Apex Tannery Ltd led the day's gainers with a near-10 percent price rise, while International Leasing and Financial Services Ltd slumped nearly 8 percent to bottom the table. The CSE mirrored the broader upswing, with its all-share index CASPI advancing around 45 points. Turnover at the port city bourse climbed to Tk 23 crore from Tk 21 crore in the prior session. Advancing and declining issues were nearly evenly matched at the CSE — 97 companies gained ground, 96 retreated and 28 held steady. Navana CNG Ltd surged 10 percent to lead gainers, while ICB AMCL 3rd NRB Mutual Fund fell by the same margin to top the day's losers.