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.