The Bangladesh Securities and Exchange Commission (BSEC) has announced that directors of nine companies listed on the Dhaka Stock Exchange will face fines if they fail to distribute declared dividends within the stipulated timeframe.

At the 930th board meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood on Thursday, the regulator vowed to impose penalties on directors of companies that have failed to distribute dividends as per their declarations.

Directors of these companies, excluding independent directors, will be required to pay dividends to shareholders from their own private funds if the distribution is not completed by the BSEC-imposed deadline.

According to BSEC Executive Director and spokesperson Mohammad Rezaul Karim, companies must pay their overdue dividends by 15 December.

BSEC to form committee for reducing time of maturating transaction in stock market

Failure to comply will result in fines levied on each director and managing director from their personal funds, in addition to requiring the distribution of the outstanding dividends.

The companies and associated penalties per director are as follows:

Safco Spinning Mills Limited – Tk 20 lakh

Pacific Denims Limited – Tk 13 lakh

Lube-Ref (Bangladesh) Limited – Tk 235 thousand

Oryza Agro Industries Limited – Tk 47 lakh

Mamun Agro Products Limited – Tk 13 lakh

Krishibid Feed Limited – Tk 10 lakh

Krishibid Seed Limited – Tk 10 lakh

BD Paints Limited – Tk 97 lakh

Associated Oxygen Limited – Tk 1.91 lakh

The BSEC directive aims to protect investors' interests and uphold the integrity of Bangladesh’s capital markets.