The Bangladesh Securities and Exchange Commission (BSEC) has fined 11 officials of Sikder Insurance Company a total of Tk 11 lakh for irregularities in the use of funds raised through its initial public offering (IPO).

The nine directors, managing director and CEO, and company secretary have each been fined Tk 1 lakh.

The penalties were imposed after a BSEC investigation found that the company failed to use IPO funds within the stipulated timeframe and used or changed fund allocations without the required approval.

Sikder Insurance raised Tk 16 crore through an IPO in 2023. According to its prospectus, the funds were allocated for fixed deposits, capital market investment, floor purchases and IPO-related expenses, with the money required to be utilised within three months.

The investigation found that Tk 4.20 crore was placed in fixed deposits against the allocated Tk 4 crore, while Tk 1.80 crore of the Tk 4.80 crore earmarked for capital market investment remained unused.

Moreover, the entire Tk 6.08 crore allocated for floor purchases was not utilised within the stipulated period. The company later decided to invest the funds in government Treasury Bills, which was approved by shareholders in December 2024.

Of the Tk 1.11 crore allocated for IPO-related expenses, Tk 90 lakh was spent, leaving Tk 21.28 lakh unused. Part of the unused amount was also placed in an FDR without prior approval.

The BSEC held a hearing on June 8, 2026, where company officials provided explanations. However, the commission found the explanations unsatisfactory and considered the violations breaches of securities laws. The fines must be paid to the commission within 30 days through bank draft or pay order.