16 firms face show-cause for not submitting financial reports

The Bangladesh Securities and Exchange Commission (BSEC) has asked the management of 16 listed companies to show valid reasons for not submitting their financial reports within a certain period.

The 16 companies are: Aman Feed, Shurwid Industries, Appollo Ispat, Emerald Oil, Bangas, Active Fine Chemicals, Aman Cotton Fibrous, Sunlife Insurance, Libra Infusion, Ambee Pharmaceuticals, Progressive Life Insurance, Imam Button, Delta Spinners, Delta Life Insurance, Fareast Islami Life Insurance, and Intech.

As per regulations, listed companies are bound to submit the audited financial report of each financial year and unaudited financial reports of every quarter within a certain period.

However, the aforementioned companies did not submit their financial reports regularly in a timely manner.

A top official of the BSEC, preferring anonymity, said some listed companies do not upload the financial reports on their website and so, stock investors are deprived of the scope to analyse the real scenario of the companies.

Besides, some of them did not submit the financial reports to the regulators either, which is a breach of listing regulations and securities rules. As a result, the BSEC recently sent letters to the managing directors of these companies asking for proper justification in regard, he added.

Meanwhile, general investors sought the regulator's action against the listed companies if they do not upload financial reports on their website.

Most listed companies in Bangladesh do not post their quarterly financial reports within 48 hours of securing approval from their boards as they take advantage of the lack of specific regulations in this regard, experts say.

As per listing regulations, the issuer of listed securities must make its detailed financial statements available on its website as well as that of the country's bourses through a link arrangement. However, no deadline has been set to make such disclosures.