BM Desk: The regulatory agency Bangladesh Securities and Exchange Commission (BSEC) is currently looking into Fareast Finance and Investment Limited (FFIL), a financial company that is listed on the stock market. On the High Court’s directions, a three-person investigation committee was established to look into Sterling Creations Limited’s failure to repay its Fixed Deposit (FDR) obligations.

Within the following 60 working days, the committee—which was established under BSEC’s Market Intelligence and Investigation Division—must present a report. The committee is composed of Md. Touhidul Islam Saddam, Assistant Director Farzana Yasmin, and BSEC Joint Director Sultana Parveen.

The investigation committee will look into whether Fareast Finance had the financial capacity to repay the FDR dues to Sterling and if so, why it was not paid. In addition, whether any securities laws were violated, whether Sterling sent legal notices and whether the company’s corporate responsibility and governance code were properly followed will also be analyzed. Whether the board of directors of the BSEC-reorganized FarEast has taken any initiative to pay these dues will also come under investigation.

FarEast Finance and Investment has not paid any dividend to shareholders after 2016. There was no recommendation for dividend in the latest financial statement for the financial year ended December 31, 2024. The address of this company, which was listed on the stock exchange in 2013, is now in the ‘Z’ category. The company currently has 164 million 40 lakh 63 thousand 330 shares. Of this, entrepreneurs hold 39.74 percent, institutional investors hold 12.57 percent and general investors hold 47.69 percent.

A joint review report by Bangladesh Bank and the Ministry of Finance has listed Far East Finance as one of the 20 financial institutions facing severe financial distress. The institution is currently saddled with long-term debt of over Tk 821 crore. The central bank has recommended the institution for merger due to its inability to repay depositors, high non-performing loans and capital shortage.

The investigation committee will examine whether Fareast Finance possessed the financial means to settle the FDR dues owed to Sterling and, if so, the reasons for the non-payment. Additionally, the inquiry will assess if any securities laws were breached, whether Sterling issued legal notices, and if the company’s corporate responsibility and governance code were adhered to appropriately. The investigation will also consider whether the board of directors of the BSEC-restructured FarEast has taken any steps to address these outstanding dues.

FarEast Finance and Investment has not distributed any dividends to its shareholders since 2016. The most recent financial statement for the fiscal year ending December 31, 2024, did not include any recommendations for dividends. This company, which became publicly listed in 2013, is currently categorized as ‘Z’ on the stock exchange. Presently, the company has 164 million 40 lakh 63 thousand 330 shares outstanding. Of these, entrepreneurs own 39.74 percent, institutional investors hold 12.57 percent, and general investors possess 47.69 percent.

A collaborative review report from Bangladesh Bank and the Ministry of Finance has identified Far East Finance as one of the 20 financial institutions experiencing significant financial difficulties. The institution is currently burdened with long-term debt exceeding Tk 821 crore. The central bank has suggested a merger for the institution due to its failure to repay depositors, a high level of non-performing loans, and a shortage of capital.