The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines on directors and senior officials of Khan Brothers PP Woven Bag Industries Limited and Genex Infosys PLC for securities law violations, including false financial reporting and failure to distribute dividends within regulatory deadlines.
The decisions were taken at the 1,014th commission meeting chaired by BSEC Chairman Khondoker Rashed Maqsood on 19 May.
According to the BSEC, directors and executives of Khan Brothers PP Woven Bag Industries Limited were found guilty of submitting false information in audited financial statements for the year ended June 2023.
Chairman Mohammed Enamul Kabir Khan, Managing Director Tofayel Kabir Khan and three directors were each fined Tk25 lakh, while Chief Financial Officer Md Azizul Zabber was fined Tk10 lakh and Company Secretary Tapan Kumar Sarker Tk5 lakh. The penalties were imposed as personal liabilities.
In a separate ruling, the commission fined former and acting board members of Genex Infosys PLC for failing to distribute a declared 3 per cent cash dividend for the year ended June 2024 within the stipulated timeframe.
Chairman Mohammed Adnan Imam, Acting Managing Director Shahjalal Uddin and other directors were each fined Tk1 lakh, alongside penalties on the CFO and company secretary.
The regulator also penalised Aftab Automobiles Ltd. for partial non-payment of declared dividends amounting to Tk11.68 crore out of Tk74.59 crore for FY2024.
The commission ordered payment of the outstanding dividend within 30 days. Failure to comply will trigger additional penalties, including Tk30 lakh for the chairman and managing director and Tk20 lakh for other directors, along with a daily fine of Tk10,000 until compliance.
BSEC said all fines will be treated as personal liabilities of the individuals concerned, while companies remain fully responsible for clearing unpaid dividends.
The regulator said the enforcement actions aim to strengthen disclosure discipline, ensure timely dividend payments and protect investor interests in the capital market.
