Dhaka: 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. These penalties were decided at the 1014th Commission meeting held on May 19, chaired by BSEC Chairman Khondoker Rasheed Maqsood.
According to United News of Bangladesh, the first case involves Khan Brothers PP Woven Bag Industries Limited, where the Commission fined a total of Tk 1 crore 40 lakh on seven directors and officers for providing false information in audited financial statements for the fiscal year ended June 30, 2023. 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 faced a fine of Tk 10 lakh, while Company Secretary Tapan Kumar Sarker was fined Tk 5 lakh. These fines are to be considered personal liabilities of the individuals penalized.
In the second case, Genex Infosys PLC directors and current board members faced fines amounting to Tk 8 lakh, with Tk 1 lakh imposed on each of the eight individuals for failing to pay a declared 3 percent cash dividend for the fiscal year ended June 30, 2024, within the stipulated timeframe. Those fined include Chairman Mohammed Adnan Imam, Acting Managing Director ShahJalal Uddin, and directors such as Chowdhury Fazle Imam, Prince Mojumder, Oracle Services PLC, and Nilofar Imam, along with the then-CFO and then-Company Secretary.
The third case involved Aftab Automobiles Ltd, which was fined a total of Tk 1 crore 35 lakh on seven directors and officials for failing to repay Tk 1,16,81,649.67 in outstanding cash dividends for the fiscal year ended June 30, 2024. Chairman Shafiul Islam and Managing Director Saiful Islam were each fined Tk 30 lakh, while Directors Khaleda Islam, Sajedul Islam, and Farhana Islam were each fined Tk 20 lakh. The then-CFO and then-Company Secretary were fined Tk 10 lakh and Tk 5 lakh, respectively. The Commission has mandated the company to pay the outstanding dividend within 30 days. Additional fines of Tk 10,000 per day will be imposed for any further default, without absolving the company of its liability to pay the remaining dividends to investors.
Separately, the Commission has approved the appointment of focal point and deputy focal point officers at BSEC to coordinate a nationwide investment education and safe investment awareness campaign.