The securities regulator has penalised four of the top brass of Kattali Textile, including its chairman, with fines worth Tk 40 million for non-cooperation during a special audit of the company.
The Bangladesh Securities and Exchange Commission (BSEC) imposed the fines upon hearing from the accused at its office in the capital.
As per the regulatory order, Chairman of Kattali Textile Ms. Nasreen Hoque, two directors -- Mokarram Anwar Chowdhury and Md. Anwarul Hoque Chowdhury -- and Managing Director Emdadul Hoque Chowdhury will pay Tk 10 million each.
The BSEC appointed Islam Jahid & Co. as special auditor of Kattali Textile in February last year in line with the Securities and Exchange Ordinance, 1969.
The issuer or its directors, or any persons related to the audit were required to furnish or produce documents alongside providing all-out support or assistance for the audit.
Instead of helping the auditor, Kattali Textile sought time again and again, putting up excuses.
In April 2023, the company asked the regulator to delay the audit for at least 120 days, citing sickness of one of its key team members.
Then the BSEC extended time and instructed the company in June 2023 to ensure full cooperation with the auditor.
In early July 2023, Kattali Textile further requested for a 90-day time extension on the pretext that its managing director was about to go abroad for treatment.
This time, the regulator extended time till July 31, 2023 for the submission of an audit report, saying that no further time extension would be allowed.
At the end of July last year, the BSEC found that the auditor was yet to start the audit for being unable to enter the company premises.
According to the securities regulator, it was evident that the issuer company was avoiding the instructions of the commission.
mufazzal.fe@gmail.com