The Bangladesh Securities and Exchange Commission (BSEC) has resolved to prolong the lock-in period for shares owned by sponsors, directors and placement shareholders of Asiatic Laboratories Limited over allegations of unauthorized business diversification and failure to use IPO proceeds in line with the approved plan.

The decision was taken at the Commission’s 999th meeting held today, chaired by BSEC Chairman Khondoker Rashed Maqsood.

According to a press release issued by the regulator, Asiatic Laboratories received approval on August 31, 2022, to raise Tk 95 crore through an Initial Public Offering (IPO). The funds were earmarked for business expansion, construction of a factory building and repayment of bank loans.

However, the company has not utilized the IPO proceeds in accordance with the commitments outlined in its prospectus.

An investigation conducted by the Dhaka Stock Exchange (DSE) found that on September 28, 2025, the company disclosed Price Sensitive Information (PSI) announcing plans to construct a 32-storey luxury building. The disclosure was made without conducting any feasibility study, project evaluation, or securing mandatory approvals from RAJUK and relevant environmental authorities.

Moreover, the move to venture into the real estate or hospitality sector does not align with the company’s Memorandum of Association (MoA), raising further regulatory concerns.

Considering the protection of general investors and maintaining stability in the capital market, the Commission decided to extend the lock-in period for shares held by 183 sponsors, directors and placement shareholders named in the prospectus.

The extended lock-in will remain effective for an additional three years or until the completion of the proposed building and receipt of the RAJUK occupancy certificate, whichever occurs later.

At the same meeting, the Commission also approved the draft “Bangladesh Securities and Exchange Commission (Capital Market Information Disclosure and Whistleblower Protection) Rules, 2026.” The draft rules will be published in national newspapers and uploaded to the Commission’s official website to invite public feedback.