Regulatory body Bangladesh Securities and Exchange Commission (BSEC) has decided to investigate the factories, offices, financial accounts and other business activities of 11 companies listed in the capital market. At the same time, it has been decided to investigate the use of money collected through the initial public offering (IPO) of nine of the companies, the re-initial public offering (RPO) of one and the issuance of rights shares of one.
In continuation of this, separate three-member investigation committees have been formed for the companies. They have been asked to submit investigation reports within 30 and 60 working days. The formed investigation committee will investigate whether there is any irregularity in the business activities of the companies.
The companies are: Amra Network Limited, Best Holdings Limited, Index Agro Industries Limited, JMI Hospital Requisite Manufacturing Limited, Lub-Ref Bangladesh Limited, Navana Pharmaceutical Limited, Ring Sign Textiles Limited, Bangladesh Shopping Corporation Limited, Sikder Insurance Limited, Silva Pharmaceuticals Limited and Active Fine Chemical Limited.
The BSEC order stated, “The Bangladesh Securities and Exchange Commission considers that in the larger interest of the capital market and the general investors, it is necessary to verify the factories, head offices, financial books and records and other relevant documents of the companies subject to inspection. Therefore, the Commission, under the powers conferred by Rule 17 of the Securities and Exchange Rules, 2020, has appointed three separate officers each for the companies to conduct the investigation. The inspection officers shall complete the investigation within 30 working days from the date of issuance of this order and submit the inspection report to the commission.”
The investigation officers are: BSEC Deputy Director Md. Shahidul Islam, Assistant Director Md. Mehedi Hasan Rony and Assistant Director Md. Minhaj Bin Selim will conduct the investigation of Amra Network.
The investigation of Best Holdings will be conducted by Additional Director Faruk Hossain, Assistant Director Araful Islam and Assistant Director Abdul Baten.
The investigation of Index Agro will be conducted by Joint Director Rashidul Alam, Assistant Director Ibrahim Ali and Assistant Director Raihan Kabir.
The investigation of JMI Hospital Requisite will be conducted by Deputy Director Md. Asif Iqbal, Assistant Director Farzana Walia and Assistant Director Asmaul Husna.
The investigation of Lub-Ref Bangladesh will be conducted by Additional Director Saiful Islam, Assistant Director Tanmoy Kumar Ghosh and Assistant Director Md. Ruman Hossain. The investigation of Navana Pharmaceuticals will be conducted by Deputy Director Ziaur Rahman, Assistant Director Rubel Hossain and Assistant Director Shakil Ahmed.
The investigation of Ring Sign will be conducted by Additional Director Mohammad Nazrul Islam, Assistant Director Tariqul Islam and Assistant Director Amit Adhikari.
The investigation of Bangladesh Shopping Corporation will be conducted by Additional Director Mohammad Al Masum Mridha, Assistant Director Mosabbir Al Asiq and Assistant Director Mehran Ali.
The investigation of Sikder Insurance will be conducted by Additional Director Yusuf Bhuiyan, Assistant Director Shariful Islam and Assistant Director Anwarul Azim.
Silva Pharmaceuticals’ investigation will be conducted by Deputy Director Abdus Selim, Assistant Director Azizur Rahman and Assistant Director Binoy De.
Active Fine Chemicals’ investigation will be conducted by Additional Director Mohammad Al Masum, Deputy Director Md. Nanu Bhuiyan and Assistant Director AKM Faruk Alam.
The investigation committee formed will look into the following issues – whether income and expenditure have been confirmed through proper documents and as per the provisions of the commission. Along with identifying the persons with whom the transactions have been made and the cash flow of the transactions and fair valuation of those investments.
Verifying bank account transactions. To identify if there are any transactions with any related parties as per IAS 24.
Confirming whether any of the IPO or RPO or right share money has been spent. Along with this, verifying the financial reports regarding whether the right share money has been used in the sector where it was supposed to be used and reporting it to the commission from time to time. In addition, verify whether all types of transactions have been made through checks or bank transfers other than petty cash.
In addition, verify if there are any other relevant issues in this regard. However, the investigation committee will verify several other information about Active Fine Chemicals. They are: It will be verified whether the company is complying with the mandatory policy under the Corporate Governance Code in the larger interest of the general investors. Along with this, the role of the company’s board of directors, audit committee, managing director or CEO, CFO and company secretary, and top management will be verified.
On the other hand, it will verify whether the dividends paid to the shareholders of the company in the last five years have been properly distributed and whether they have been in accordance with the policies of the regulatory body. It will also verify whether the profits have been misused or spent elsewhere.
The company will identify and verify all transactions between related parties in the last five years. It will investigate the reasons for the company’s failure to conduct the AGM within the time limit and its impact on the interests of shareholders. The investigation committee will evaluate financial management, efficiency in conducting operations and compliance with other policies of the regulator. The company will review the performance of external auditors, including those who issued corporate governance compliance certificates to the company. It will assess the company’s initiatives to protect the interests of investors and its compliance with BSEC regulations.
In addition, the investigation committee will provide effective recommendations on the company’s good governance and deficiencies in financial reporting.
In this regard, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim told Risingbd.com, “The regulatory body Bangladesh Securities and Exchange Commission has decided to investigate other business activities of the companies. The current commission is working with utmost importance to restore investor confidence by ensuring good governance in the capital market.”