BSEC cracks down on Fortune Shoes over unpaid dividends, fees

The market regulator has imposed fines on the chairman, directors, and senior officials of Fortune Shoes for failing to pay declared dividends and listing fees.
The decision was taken at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday, chaired by its Chairman Khondoker Rashed Maqsood.
According to a BSEC statement, Fortune Shoes declared a 10 per cent cash dividend and a 5 per cent stock dividend for FY22. Out of Tk 162.5 million in declared cash dividends, Tk 39.8 million remains unpaid to shareholders, raising serious concerns over investor protection.
The company also failed to pay Tk 1.83 million in listing fees owed to the Dhaka Stock Exchange (DSE) over the past three years.
The BSEC has ordered the company to clear all outstanding dues within 30 days, warning of further legal action in case of non-compliance.
The market regulator imposed a fine of Tk 50 million on the company's Chairman, Md. Mizanur Rahman, for violating securities laws and harming investors' interests.
Directors Md. Amanur Rahman and Robiul Islam, former director Md. Khosrul Islam, and Managing Director Roksana Rahman were fined Tk 5 million each.
Chief Financial Officer Jamil Ahmed Chowdhury was fined Tk 1 million, while former company secretary Riaz Uddin Bhuiya and current Company Secretary Md. Nazmul Hossain were fined Tk 500,000 each. The individuals penalised have been instructed to deposit the money within seven days.
At the meeting, the commission also decided to allow 'A' category banks listed on the stock exchanges to maintain their dividend accounts with their own banks.
Previously, listed banks had to maintain dividend-related accounts with separate banks to ensure greater transparency and monitoring of dividend payments to shareholders. However, the new decision relaxes that requirement for 'A' category banks, which are generally considered financially stable and compliant with regulatory standards.
The change is expected to simplify dividend payment procedures, reduce administrative costs, and improve efficiency in fund management for listed banks.
The commission has also approved a policy relaxation allowing listed companies with regulator-appointed or restructured boards to raise capital even if the combined shareholding of the new board falls below 30 per cent.
Previously, such companies often faced restrictions on issuing rights shares, bonus shares, and other fundraising instruments if board ownership did not meet the 30 per cent threshold.
Under the revised framework, companies under regulatory restructuring will still be eligible for capital raising, subject to standard regulatory scrutiny, disclosure requirements, and investor protection safeguards.
The BSEC said the move aims to ensure that restructuring efforts do not hinder fund mobilization needed for recovery, operations, or expansion.
A formal notification will be issued to implement the revised policy, the BSEC said.
The regulator also approved the continuation of the "Bangladesh Securities and Exchange Commission Capital Market Journalism Excellence Awards and Fellowship 2026", an initiative aimed at promoting transparent, objective, and research-based financial journalism in the country.
The programme, first launched last year, recognizes journalists reporting on the capital market and also provides fellowship opportunities to strengthen their analytical and professional skills.
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