Most listed firms deprive investors of crucial info
As many as 174 out of the 310 listed companies are withholding price-sensitive information on their websites by not updating them in gross violation of listing regulations.
Another four companies' websites are not functioning at all, while one company has no web address at all.
In so doing, the investors of the stocks are being deprived of crucial information, said Abu Ahmed, a market analyst.
The regulators -- the Dhaka Stock Exchange and Bangladesh Securities and Exchange Commission -- should take action against the companies so that investors do not suffer from information asymmetry, said Ahmed, also a former chairman of the Dhaka University's economics department.
All listed companies must have an official website, according to the listing regulations and corporate governance code.
And the website must provide: details of the business, shareholding, trading of shares of sponsors; profile along with photographs of directors; quarterly financial statements and annual audited financial statements; latest directors' report; all price sensitive information; status of compliance with corporate governance; and contact number of the officials of investor relations department.
The Daily Star found 131 companies are putting up information on all the nine areas on their websites.
The rest are not giving all the information, with two not even uploading their financial reports on their websites. Some companies update their information belatedly.
The websites of Fortune Shoes, C&A Tex, Tallu Spinning and Tung Hai Knitting linked on the Dhaka Stock Exchange website cannot be accessed at all.
The Daily Star contacted the four companies on the telephone number and email addresses provided on their profile page on the DSE website -- but none responded.
There is no link to a website on Samata Leather's page on the DSE website, and the telephone number provided was found inactive. There is not email address, either.
The DSE provided the link of the website of Multimode Group, the parent company of Dulamia Cotton and Kay & Que on their respective profile pages. No information on the two companies can be found on Multimode's website.
But, the two companies have separate websites of their own, where they are providing all the requisite information asked by the regulator.
“We informed the DSE about updating our companies' profile pages but they have not done so yet,” said Partha Protim Das, company secretary of Kay & Que.
Alif Industries and Alif Manufacturing did not upload any financial report on their website.
Md Mohiuddin, an official of the share department of Alif Group, said they introduced the website last year but it has not been updated. “We will update the website in future,” he added.
The regulators are not monitoring whether the listed companies are giving the information through the website, said Mizanur Rahman, professor of the Dhaka University's department of accounting and information system.
“This is deficiency of the regulators.”
Moreover, there are questions about the quality of information provided by the listed companies.
“The errant companies should be punished,” he added.
Contacted, KAM Majedur Rahman, managing director of the DSE, said: “We will take action against these companies. This is part of corporate governance.”
The DSE is taking steps one by one to uphold corporate governance and rules and regulations.
“All the listed companies should have an informative website. If anyone does not comply, we will take action,” said Saifur Rahman, spokesperson of the BSEC.
The corporate governance code, which stipulates on maintaining an informative and updated website at all times, has already been approved, said Rahman, also an executive director of the BSEC.
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