One SME that is listed on the stock exchange, Krishibid Feed Limited, has been breaking the law one after another. The 2023 dividend has not yet been distributed to investors, and this year’s announcement of a new bonus dividend is perceived by investors as a scam. Due to a fund crisis, the company has illegally used the dividend money in other sectors.

According to sources, the 10% cash and 2% bonus dividend declared for the 2023 fiscal year have not yet been paid to shareholders. However, Krishibid Feed has declared a new 5% bonus dividend as of June 30, 2024. Earlier, a 12% dividend was declared for 2023, but it was not paid within 30 days as per the Securities and Exchange Ordinance, which is a violation of the law.

Company Secretary Md. Mamun Ahmed said that the dividend payment has been delayed due to the fund crisis and they will try to pay it soon. However, investors are complaining that BSEC and DSE are not taking any effective action. According to them, if BSEC had taken timely action, Krishibid Feed Limited would not have been able to delay paying the due share to investors for a year.

Despite repeated letters from investors regarding the shares of the SME Board, the regulatory agencies have not taken any effective action. Investors are demanding that the SME Board be abolished and transferred to the main market and brought under proper monitoring.

In addition, the company has violated the law before. For example, the entrepreneurial director Jinnat Ara announced the sale of shares, which is a violation of the Securities and Exchange Act. There are further allegations that Krishibid Feed Limited violated the terms of the consent letter in issuing bonus shares.

Investors claim that if BSEC had taken appropriate action, there would have been no possibility of such injustice and punitive action should have been taken against the company.

Furthermore, the business has previously broken the law. For instance, Jinnat Ara, the entrepreneurial director, violated the Securities and Exchange Act when she announced the sale of shares. Additional claims have been made that Krishibid Feed Limited issued bonus shares in violation of the consent letter’s conditions.

Investors contend that BSEC should have taken disciplinary action against the company and that such injustice would not have occurred if the agency had acted appropriately.