The Bangladesh Securities and Exchange Commission on Thursday launched investigation into allegation of issuing fake shares by Rahima Food Corporation Limited.
The BSEC formed a three-member committee headed by its deputy director Ziaur Rahman to find out whether any anomalies occurred in issuing or demating shares of the company.
The BSEC instructed the committee to investigate whether there was any inconsistency in the number of shares recorded on the CDBL and the Registrar of Joint Stock Companies and Firms with demated and unsettled shares from paid up capital and allotment.
Demat refers to the process of converting physical paper-based shares into electronic or digital shares.
As the company had been non-performing for many years, City Group took over the company in 2016.
However, the company has not issued any shares since it was taken over by the group, according to the company鈥檚 published data.
The company was delisted from聽the DSE on July 19, 2018 due it being non-functional for a prolonged period, but it was relisted in 2020.
The BSEC also asked the team to check if there are any problems in suspense beneficiary owner鈥檚 accounts maintained by the company.
The investigation committee will review the current shareholding positions of the company鈥檚 board members.
The committee will also investigate unauthorised issued shares when the company converted its paper-based shares into electronic ones.
Additionally, the BSEC instructed the committee to find out why Rahima Food Corporation has not addressed various complaints made by investors.
The BSEC has given the committee 15 working days to complete this investigation and submit their findings.
Rahima Food Corporation was established in 1990 as a private company and joined the stock market in 1997.