The Bangladesh Securities and Exchange Commission on Sunday decided that it would fine directors of 10 listed companies, if they fail to distribute undisbursed dividends by December 15.
The commission also imposed fines of Tk 5 lakh each on two brokerage firms due to their non-compliance with securities laws.
The stock market regulatory body made the decisions at a commission meeting in the BSEC office in the capital Dhaka, according to a press release issued by the BSEC.
The press release said that the listed companies did not disburse the declared dividends within the stipulated time.
鈥業f the companies fail to disburse the declared dividend by December 15, each of the managing directors and the directors of these companies will have to pay a certain amount of fine from their personal accounts. Only the independent directors will be excluded from the imposed fines,鈥� the press release said.
Of the managing directors and the directors of nine listed companies, each of Safko Spinning Mills Limited will have to pay a Tk 20 lakh fine, each of Pacific Denims Limited will be fined Tk 13 lakh, each of Lub-rref (Bangladesh) Limited will be fined Tk 2.35 crore, each of Oryza Agro Industries Limited will be fined Tk 47 lakh, each of Mamun Agro Products Limited will be fined Tk 13 lakh, each of Krishibid Feed Limited will be fined Tk 10 lakh, each of Krishibid Seed Limited will be fined Tk 10 lakh, each of BD Paints Limited will be fined Tk 97 lakh, each of Associated Oxygen Limited will be fined Tk 1.91 crore if they do not complete distributing dividends by December 15.
Another listed company, Advent Pharma Limited will have to distribute the undisbursed dividends by November 30, otherwise the managing director and the directors (excluding independent directors) of the company will be fined Tk 4 lakh each from their personal accounts.
The press release stated that the commission imposed fines on two brokerage firms, including Prudential Capital Limited and NLI Securities Limited Tk 5 lakh each due to shortage in their consolidated customer accounts.
It further added that, each of the two firms will be fined Tk 10,000 per day if this shortage in their CCAs continues.
