Directors of two firms fined Tk 1.5 crore for breaching securities rules

The stock market regulator fined directors and top officials of two companies — Khan Brothers PP Woven Bag Industries and Genex Infosys — a total of Tk 1.5 crore for breaching securities rules.

The Bangladesh Securities and Exchange Commission (BSEC) also ordered the directors and top officials of Aftab Automobiles to pay dividends within 30 days or face fines amounting to Tk 1.55 crore.

The decisions were taken today at a commission meeting chaired by BSEC Chairman Khondoker Rashed Maqsood, according to a press release.

The directors and top officials of Khan Brothers PP Woven Bag Industries were fined a total of Tk 1.4 crore for providing false data in the company’s audited financial report for the year ended June 30, 2023.

“They were responsible for the misstatement,” the press release said.

Khan Brothers PP Woven Bag Industries Chairman Mohammed Enavul Kabir Khan, Managing Director Tofayel Kabir Khan, and directors Ruhul Kabir Khan, Hazrat Ali, and Jarin Kabir Khan were each fined Tk 25 lakh.

For the same reason, Chief Financial Officer Azizul Zabber and Company Secretary Tapan Kumar Sarker were fined Tk 10 lakh and Tk 5 lakh respectively.

According to the press release, another listed firm, Genex Infosys, announced a 3 percent cash dividend for shareholders for the year ended June 30, 2024.

However, it failed to pay the dividend within the stipulated timeframe, prompting the regulator to fine its Chairman Mohammed Adnan Imam, Acting Managing Director Shahjalal Uddin, and directors Chowdhury Fazle Imam, Prince Mojumder, and Nilofar Imam Tk 1 lakh each.

Oracle Services, a corporate director of Genex Infosys, was also fined Tk 1 lakh, along with the company’s then CFO and company secretary.

Meanwhile, Aftab Automobiles announced a 10 percent cash dividend for shareholders for the year ended June 30, 2024. However, it failed to disburse Tk 1.16 crore, or 15 percent of the total payable dividend.

The regulator ordered the company to pay the dividend within the next 30 days or face total fines of Tk 1.55 crore, which would be imposed on the company’s chairman, directors, managing director, and CFO.

They will have to pay the fines from their own funds, according to the statement.

The stock market regulator also said that paying the fines as punishment would not absolve the company of its responsibility to disburse the dividend.