The Bangladesh Securities and Exchange Commission (BSEC) has withdrawn its earlier approval granted to IT company Doer Services PLC to raise Tk 5 crore through the issuance of shares in the market.
The decision was made during the commission’s 939th meeting held on Tuesday.
According to a press release signed by BSEC’s Executive Director and Spokesperson Mohammad Rezaul Karim, the subscription for Doer Services’ Qualified Investor Offer (QIO) has been cancelled.
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The move follows allegations of irregularities involving the company.
On December 5, the company was initially given a letter of consent to proceed with the share issuance. But BSEC has now decided to suspend this approval and has formed an investigation committee comprising officials from both BSEC and the Dhaka Stock Exchange (DSE) to scrutinise the allegations against the company.
Doer Services had applied to the commission in April last year for approval to raise funds from the market.
Later, the then Shibli Commission had decided to issue a letter of intent (LoI) with certain conditions.
The company later proposed to issue 50 lakh ordinary shares to raise Tk 5 crore, with the funds earmarked for improving services in several areas, including its Doer School Management Software, D-Courier, call centre and tracking system, and AI-based software.
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Recent media reports highlighting concerns about Doer Services' service agreements and discrepancies in its reported revenue and profits, prompting the BSEC to initiate a closer examination.
The BSEC in its press release said that the investigation aims to ensure the integrity of the market and protect the interests of investors.