The Bangladesh Securities and Exchange Commission (BSEC) will investigate the utilisation of funds raised by Krishibid Seed Limited through its Qualified Investor Offer (QIO) on the SME platform of the stock market.

The securities regulator has formed a two-member inspection committee to verify whether the company spent the proceeds for the purposes stated in its prospectus.

The Market Intelligence and Investigation Division of BSEC recently issued an order in this regard, directing the committee to submit its report within 30 working days.

The committee comprises BSEC Deputy Director Mawdud Momen and Assistant Director Mohammad Ruman Hossain.

BSEC Executive Director and spokesperson Md Abul Kalam said the commission would examine how and in which sectors the QIO proceeds had been spent.

He said relevant documents and bank transaction records would be scrutinised to determine whether the funds were utilised in accordance with the prospectus. If any irregularities or violations of laws are detected, legal action will be taken against those responsible.

According to the BSEC order, the officials were appointed under Rule 17 of the Securities and Exchange Rules, 2020, to inspect the company’s activities.

The inspection will examine the sectors in which the QIO proceeds were spent, the parties involved in the transactions and the destinations to which the funds were transferred.

The committee will also verify whether the utilisation of the funds was properly disclosed in the company’s financial statements and whether transactions, except petty cash expenses, were conducted through bank transfers.

In addition, the inspectors will review the company’s bank account transactions and balances to determine whether any funds were spent outside the approved purposes.