The securities regulator has fined all shareholder directors of Tung Hai Knitting & Dyeing Ltd for violating shareholding rules.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision in a meeting on Wednesday with its Chairman Professor Shibli Rubayat-ul-Islam in the chair, read a press release.
The company violated the section 35 of the Dhaka Stock Exchange (Listing) Regulation, 2015. It had failed to submit the monthly shareholding report from August 2017 to August 2018 in accordance with the law.
The company also did not reply to the Dhaka Stock Exchange's (DSE) query letter. Later, a DSE team conducted a visit to the factory, but found it locked down.
For violating the securities law, the commission then fined the company's each director, excluding the independent ones, Tk1 crore. Directors who were fined will not be able to serve as directors at any other listed companies, read the press release.
The company's sponsors and directors jointly own 30.04 percent shares, institutional investors 5.62 percent, and general investors 64.34 percent.
The last trading price of each share of the company at the Dhaka Stock Exchange was Tk1.90. The company was listed on both the stock exchanges in 2014.