BSEC forms inquiry committee to look into Simtex Industries

The Bangladesh Securities and Exchange Commission (BSEC) has formed a committee to conduct an inquiry into the overall affairs of Simtex Industries Limited, an industrial sewing thread manufacturer in Bangladesh.

The commission formed the committee consisting of three members, based on complaints of shareholders, the director, and chairman of the company.

The three members of the probe committee are Md Ohidul Islam, additional director, Mahmudur Rahman, assistant director of BSEC, and Saied Mahmud Zubayer, DGM of the Dhaka Stock Exchange (DSE).

According to BSEC, the committee will complete the inquiry and submit a report to the commission within 30 working days of the order being issued.

In August, the company's chairman, Lieutenant Colonel Md Anisur Rahman (retired) applied to the regulatory body to save Simtex Industries listed on the stock market.

He put in the application after a conflict with his business partner and founder of the company, Siddiqur Rahman, over the management of the company.

Anisur Rahman said he was asked to resign in an unscheduled board meeting on 17 August.

He claimed he was removed from the post of chairman for protesting against illegal and unethical activities. He also claims to have received death threats.

Currently, the managing director of the company is Siddiqur Rahman's son Niaz Rahman.

There is also conflict reported between the two parties at the Savar factory premises of the company. Both parties filed cases against each other after the conflict.

Simtex Industries Limited was listed on the stock market in 2015. At that time, the independent director of the company was Uzzal Kumar Nandi, a close associate of PK Halder.

The company paid a 4% cash dividend to shareholders for the financial year ended 2021.