The Bangladesh Securities and Exchange Commission (BSEC) has warned that companies failing to disburse declared dividends to shareholders on time, alongside with their directors, will face strict punitive measures.
In a press originate issued on Monday (9 December), the inventory market regulator mentioned that within the interest of the nation’s capital market and investors, it is working to engage with listed firms downgraded to the Z category due to varied considerations, alongside with non-compliance with dividend distribution requirements.
Emphasising its ongoing efforts to tackle non-compliance, the BSEC has warned firms to distribute declared dividends all the tactic through the prescribed timeframe.
Previously, Self belief Cement became downgraded to the Z category for failing to pay the declared dividend for FY23 on time. Furthermore, the company’s top officers had been summoned by the BSEC.
The BSEC mentioned that as a outcomes of their intervention, the company has now distributed the 2023 dividends, resulting in an upgrade of its category from Z to A.
In response to list guidelines, listed firms are mandated to disburse declared or permitted dividends internal 30 days after approval in their annual long-established meetings (AGMs).
If any listed firms fail to pay off dividends all the tactic through the stipulated time, respective directors will possible be jointly and severally inclined to pay a penalty of Tk5,000 for on a each day basis that the default continues.
On 14 November, the BSEC effect a reduce-off date for Introduction Pharma to disburse the declared 2% money dividend for FY22 by 30 November this three hundred and sixty five days.
The commission warned that if the company did not comply, its seven directors, alongside with the managing director, would each and every be fined Tk4 lakh, with an further Tk10,000 penalty per day for further delays.
However, the company has already submitted its dividend compliance narrative to the DSE.
A senior officer at Introduction Pharma, on the situation of anonymity, prompt TBS that the company has been unable to disburse even a limited a part of the declared dividend as a result of unavailability of shareholders’ fable limited print. The undisbursed quantity is between Tk1 lakh and Tk2 lakh.
Earlier on 10 November, the BSEC effect a fresh reduce-off date for the undisbursed dividends of nine listed companies, warning that failure to comply will pause in a complete fine of Tk26.83 crore for the firms’ directors.
Among these companies, four are listed on the inventory alternate’s valuable board, while the assorted five are on the SME platform.
The firms whose managing directors and directors might maybe presumably maybe maybe additionally face fines comprise Safko Spinning Mills, Pacific Denims, Lub-rref (Bangladesh), Oryza Agro, Mamun Agro, Krishibid Seed, Krishibid Feed, BD Paints and Linked Oxygen.
At a commission assembly, the BSEC directed the charge of due dividends by 15 December and a effect quantity of fines within the occasion that they again fail to disburse the declared dividends all the tactic through the stipulated time.
In response to the BSEC sources, the firms did not disburse declared dividends for the 2021-22, and 2022-23 fiscals all the tactic through the stipulated time.
Previously, at the halt of September, the Dhaka Stock Exchange (DSE) downgraded over two dozen companies to the Z category owing to failure to pay declared dividends all the tactic through the stipulated time, and failure to explain dividends for two consecutive fiscal years.
Later, some firms returned to their outdated classes from the Z category as they submitted dividend compliance reports.
