BSEC threatens to fine directors of 10 firms if dividends not paid on time

The Bangladesh Securities and Exchange Commission (BSEC) has decided to fine directors of 10 companies if they do not pay due dividends within deadlines set by the regulator.

The stock market regulator took the decision in a meeting chaired by its chairman, Khondoker Rashed Maqsood, at its office in the capital yesterday.

The BSEC earlier ordered Safko Spinning Mills, Pacific Denims, Lub-rref (Bangladesh), Oryza Agro Industries, Mamun Agro Products, Krishibid Feed, Krishibid Seed, BD Paints and Associated Oxygen to pay the due dividends within December 15 of this year.

In a press statement released yesterday, the commission said each director of Safko Spinning Mills would be fined Tk 20 lakh while those of Pacific Denims Tk 13 lakh, and of Lub-rref (Bangladesh) Tk 2.35 crore.

For Oryza Agro Industries the fine will be Tk 47 lakh, Mamun Agro Products Tk 13 lakh and Krishibid Feed Tk 13 lakh. For each of the directors of Krishibid Seed, BD Paints and Associated Oxygen, the amounts will be Tk 10 lakh, Tk 97 lakh and Tk 1.91 crore respectively.

The BSEC also decided that the managing director and all directors of Advent Pharma would be fined Tk 4 lakh each if the drugmaker fails to pay due dividends within November 30.

Moreover, a decision has been taken to fine Prudential Capital and NLI Securities Tk 5 lakh each as both kept a deficit in their consolidated customer accounts.

"If such failures continue to prevail, a decision was taken for the imposition of a fine of Tk 10,000 for each day," reads the press release.