Securities and Exchange Commission

Enforcement Department

Monthly Report

2nd November 2003

 

Following enforcement actions were taken by the Commission during October, 2003:

 

Sl. No.

Date

Nature of default/Appeal

Commission’s decision

01.

26/10/03

Failure to comply with the condition of the prospectus regarding payment of 15% dividend to the preference shareholders as well as the provision of securities laws regarding payment of dividend by Beach Hatchery Ltd.

Letter issued with warning to comply with all securities laws in future.  

02.

26/10/03

Contravention of the provision of wewa 10 (1) and (2) and wewa 33(1) (O)  of the wmwKDwiwUR I G·‡PÄ Kwgkb (gv‡P©›U e¨vsKvi I †cvU©‡dvwjI g¨v‡bR‡g›U) wewagvjv, 1996  [failure to deposit annual fees in due time] as well as failure to comply with the condition 2, 8 and 13 of the Commission’s letter wbeÜb- 1.088/99-529 ZvwiL 31/8/1999 by Merchant Banker Mercantile Securities Ltd.

Letter issued with warning to comply with all securities laws in future.  

03.

26/10/03

Contravention of the provisions of rule 4, sub-rule 1; rule 8, sub-rules, clause (cc) and (CCC) of Securities and Exchange Rules, 1987 and regulation 13 of Settlement of Stock Exchange Transactions Regulation, 1998 by stock dealer Surma Securities Holding Co. Ltd. (DSE Member No. 111).

 

Letter issued with warning to comply with all securities laws in future.

04.

28/10/03

It appears from the Commission’s appointed auditor’s [auditor appointed by the Commission under rule 12, sub-rule 3, as amended, of the Securities and Exchange Rules, 1987, to re-audit the financial statements of Bangladesh Dyeing & Finishing Industries Ltd. for the year ending on 31 December 2001] report that the issuer, among others, failed to  keep proper books of accounts as per law, preserve appropriate and documentary evidence in support of transactions etc.

 

 

Directive issued under section 20A of the Securities and Exchange Ordinance, 1969to Bangladesh Dyeing & Finishing Industries Ltd., to-

 

(a) keep proper books of accounts required as per the Companies Act, 1994; and

 

(b) preserve appropriate and documentary evidence in support of transactions; and

 

(c) make good the loss suffered due to transactions with related companies and also use of company’s assets and resources by the related companies; and

 

(d) submit a report to the Commission within 31 December 2003 after compliance with the requirements listed at (a) through (c) above, certified by the auditor appointed by        the Commission.

05.

28/10/03

It appears from the Commission’s appointed auditor’s [auditor appointed by the Commission under rule 12, sub-rule 3, as amended, of the Securities and Exchange Rules, 1987, to re-audit the financial statements of Bangladesh Zipper Industries Ltd. for the year ending on 30 June 2001] report, among others, that the issuer - (i) did not maintain proper books of accounts required to reflect its state of affairs and to substantiate its expenditures; (ii) did not produce sufficient and appropriate audit evidence to the auditor for audit; (iii) has suffered huge financial loss due to unexplained bank transactions with its sister concerns and huge quantity of sales to sister concerns etc.

Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to Bangladesh Zipper Industries Ltd., to rectify its books of accounts within 31 December 2003 in the light of the audit report mentioned above and also make good the loss suffered due to huge inter company transactions, up to the satisfaction of the auditor appointed by the Commission.

06.

28/10/03

Alleged contravention of the condition (a) of the Commission’s Notification No. SEC/SRMI/2000-953/1950 dated 24th October 2000, gazette on 7th November 2000.

Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to the managing director, members of the board of directors and management authority related therewith of the City Bank Limited to take appropriate and necessary measures to hold the pending AGM by 31 December 2003.   

 

(On training abroad)

 

Farhad Ahmed                                                   Sirajul Huq

Executive Director                                              Deputy Director

 

CC:

Chairman

Member (Admin)

Member (Law & Enforcement)

ED (CMRRCD, R&D)

DD (MIS)- with a soft copy for uploading in the Commission’s website

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