The stock market regulator has requested the authorities concerned to bar six directors of three listed companies from leaving the country till further notice pending legal actions for financial irregularities.
The Bangladesh Securities and Exchange Commission (BSEC) earlier this week sent letters to the authorities of the Criminal Investigation Department, immigration, airports, and land ports in this regard.
Md Azimul Islam, managing director of Alif Manufacturing Company Ltd, is one of the six directors.
He is also managing director of Alif Group and chairman of Alif SSL Sports Holdings Ltd.
Another defendant, Mohammad Ali, managing director of Imam Button Industries Ltd, has already fled the country.
Directors of the company Jebunessa Akhter, Hamida Begum, and Lokman Chowdhury are also facing the travel ban.
Jebunessa is the wife of the managing director, while Lokman has lost his directorship for failing to comply with the 2% shareholding rule of the regulator.
Capt Tasbirul Ahmed Chowdhury, managing director of United Airways (Bangladesh) Ltd, is among the six directors.
The BSEC said the six people had collected a large amount of money from the stock market by repeatedly issuing initial public offerings, rights shares, and bonus shares.
After that, they sold a big number of shares in the secondary market at high prices, it added.
The BSEC had asked the defendants several times to attend hearings but they did not pay any heed and thus violated the regulatory rules.
In this situation, the regulator is taking legal actions against the persons.
The commission suspects that the individuals may leave the country at any time.
Imam Button Industries Ltd was incorporated in 1994 and got listed on both stock exchanges in 1996. The company used to supply buttons to the apparel sector.
The company is currently experiencing unfavourable conditions due to a lack of new machinery and investment.
The United Airways, which was listed on the stock market in 2010 and raised Tk100 crore for business expansion, is not in operation.
The management of both companies did not recommend any dividend for their shareholders for the last several years.
On the other hand, Alif Manufacturing Company raised Tk109.40 crore from the stock market by issuing right shares in 2018.
The company, which got listed on the capital market in 1997, has not used the full fund yet.