Directors of the Intech Limited, a software solution company, earned over Tk.50 crore by manipulating its share and doing all sorts of corporate misdeeds, source said. Intech Limited chairman ATM Mahbubul, directors Sadika Mahbub and Md. Anisuzzaman plundered the public money by selling their most of the shares when share price soared.
The company directors spread fake corporate news, issued stock dividend every year, maintained institutional share themselves and off-load most of those in high rate. The Bangladesh Securities and Exchange Commission (BSEC) imposed fine on each director of Intech Limited, a listed IT company, Tk 25 lakh for those irregularities. The decision to impose the fine was taken at the 629th commission meeting of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, held on Tuesday (June 23). The company directors also spread fake information about company’s business, signed fake agreement with international companies to make the company share hike. The company distributed bonus share between 10 to 15 per cent in every year in connivance with regulators to make the company share attractive. The earning per share (EPS) of the company dropped to Tk0.003 in the 3rd quarter of the year 2019 against Tk 1.08 in 2006. For example, the company’s board in 2018 spread news that it has taken decision to subscribe 40 per cent of the Ordinary Share Capital of China-BD Tech Limited (Proposed). It also artificially signed an ‘Exclusive Commercial Agreement’ with Indian Minfy Technologies Private Ltd to provide Amazon web services in Bangladesh. The Intech also said it has signed a ‘detailed commercial agreement’ with Ranial Systems Inc., Somerset, USA, for working together for pursuing different financially rewarding businesses in, specially, IT/IT enabled services, computer software/hardware, internet of things (IOT), managed services, ERP, Intelligent Energy management, strategic consulting and co-innovation, vertical applications etc. Later those corporate disclosures are proved fake in an investigation conducted by The Bangladesh Securities and Exchange Commission (BSEC) Following the news, the company’s share price jumped 10 per cent to close at Tk 56.10 each on Sunday. Its share price also soared 232 per cent or Tk 39.20 each within three months since June 18 last. On June 18, its share price was only Tk 16.90 each. During the period, the sponsor directors offload their share they hold their own and in the name of institutional investors. The sponsor directors in the name of institutional investors hold those shares by themselves by 36.87 per cent. Presently the sponsor directors currently own 3.07 per cent and institutional investors own 10.82 per cent share. The Intech, which was listed in the DSE in 2002, disbursed 10 per cent stock dividend for the year ended on June 30, 2017. The company’s paid-up capital is Tk 282.17 million and authorized capital is Tk 300 million, while the total number of securities is 28.21 million, according to DSE data. As mentioned, Intake Online is basically an internet service provider. Last year, the company reportedly engaged in a variety of trades on the stock exchange. The market share price also continues to rise. The news of the company being involved in so many businesses together is viewed by the concerned people as part of the share price manipulation. Some of this information has not been officially released in the form of Price Sensitive Information (PSI). Through this, the company has violated the securities law. The directors of the company (excluding nominees and independents) have been fined for this crime In a statement issued by the BSEC, the PSI did not discuss the issue of expanding the company’s business in different sectors at the Annual General Meeting (AGM), and projecting resorts, starting businesses in the fisheries sector and making new investments and return on investment. Besides, as per the notification No. SEC / CMRRCD / 2009-193 / 119 / admin / 34 of the commission, the board of directors of the company did not hold the minimum share. Through these, Intake has violated Listing Regulation 24, Commission Order No. SEC/CMRRCD / 2009-193 / 189 / Admin / 64 and Circular No. SEC / CMRRCD / 2009-193 / 119 / Admin / 34. For this reason, the commission has decided to impose a fine of Tk 25 lakh on each director of the company (excluding independents and nominees).