The Bangladesh Securities and Exchange Commission (BSEC), the regulatory authority, has opted to investigate the factory, head office, financial records, and other pertinent documents of Al-Madina Pharmaceuticals Limited, a company listed on the SME platform of the stock market within the pharmaceutical and chemical sector. The commission deems it essential to undertake these measures to safeguard the interests of the capital market and its investors.

In line with this, a three-member investigative committee has been established under certain conditions. The commission has instructed this committee to present a report on the matter within the next 30 working days.

According to BSEC sources, a conditional order has recently been issued by the Market Intelligence and Investigation Department of BSEC regarding this issue. The Managing Director of Al-Madina Pharmaceuticals Limited has been notified about the ongoing investigation.

The investigation committee comprises BSEC Deputy Director Md. Sirajul Islam, Assistant Director AKM Faruk Alam, and Dhaka Stock Exchange (DSE) Manager Md. Shahidul Islam Pramanik.

The investigation committee will investigate the following issues:

1. Whether the money collected through the Qualified Investor Offer (QIO) has been spent in accordance with the terms and conditions stated on pages 14-16 of the prospectus and the Commission’s consent letter dated March 23, 2023.
2. Who are the parties to the relevant transaction, what was the cash flow of that transaction and whether the investment has been properly valued.
3. Whether any related party transaction has taken place as per International Accounting Standard (IAS) 24.
4. Whether the use of the money collected through the QIO has been reflected in the subsequent financial statements.
5. Whether all transactions, except for minor cash expenses, have been made through bank transfers or crossed checks.
6. To verify the transactions and unused funds in the bank account.
7. If the purpose or time limit for using the funds collected through QIO has changed, whether the approval of the general shareholders has been obtained as per condition number 27 of the Commission’s consent letter.
8. In addition, the investigation committee formed will look into other relevant issues in this regard.