BSEC seeks data about firm directors’ loans
The listed firms will have to submit the information to the commission within three working days after getting the letter
The stock market regulator has sought information from all listed companies about loans against a lien or pledge of shares by their directors and shareholders who hold more than 10% shares of the firms.
The Bangladesh Securities and Exchange Commission (BSEC) also sought information about the directors and shareholders who take margin loans from stockbrokers or portfolio managers.
On Tuesday, the commission sent separate letters to all listed companies in this regard.
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The listed firms will have to submit the information to the commission within three working days after getting the letter.
Earlier on March 2021, the commission issued a direction that the listed companies must provide, within 15 days of the end of each quarter, information about their directors and shareholders who hold more than 10% shares and availed loan facilities by lien or pledge of shares to the lenders, and information about such directors' and shareholders' margin borrowings from stockbrokers or portfolio managers.
The regulator asked the companies to furnish the information in compliance with the notification.
On 13 January this year, the commission fined Tk3 crore to the directors of Aman Cotton Fibrous Ltd, due to irregularities in the initial public offering (IPO) fund. And directed the cancellation of the company's lien of Tk73 crore in fixed assets.
The regulator said the company failed to use its IPO proceeds within the scheduled period and also gave loans to sister concerns without the approval of general investors.
