Prohibited by the Bangladesh Security and Exchange Commission (BSEC) from auditing listed companies and mutual funds due to failure in attending an enquiry hearing, Ahmed Zaker & Co Chartered Accountants has now been given an opportunity to place its statements.
The High Court has directed the BSEC to settle within one month the dispute over listing the company as an audit firm by giving it an opportunity to submit their statements regarding the allegations of misconduct it committed earlier.
The HC bench of Justice Sheikh Hassan Arif and Justice Md Bazlur Rahman delivered the verdict on Tuesday after disposing of a writ petition filed by Ahmed Zakir & Co.
Barrister AM Masum, Barrister Sayed Mahsib Hossain and Advocate Taisir Hoque appeared in the court hearing on behalf of the BSEC, while Barrister Khandaker Reza-E-Raquib represented the company.
Barrister Khandaker Reza-E-Raquib said the HC asked the BSEC to enlist the company within one month.
However, BSEC lawyer Barrister Sayed Mahsib Hossain said the HC has given liberty to the BSEC to take all lawful actions against them if they are found to have committed unlawful acts.
However, upon hearing the petitioner if the BSEC is of the view that no misconduct has been done by the firm then, no penalty can be imposed upon them.
The BSEC in January last year banned Ahmed Zaker & Co Chartered Accountants from auditing all listed companies and mutual funds as it did not attend any of the enquiry hearings of four mutual funds of UFSL Asset Management.
The BSEC said the audit firm did not attend the hearing for the enquiry of UFSL IBBL Shariah Unit Fund, UFSL-Popular Life Unit Fund, UFSL-Padma Life Islamic Unit Fund, and UFSL-Bank Asia Unit Fund.
Universal Financial Solutions Ltd was the fund manager of the funds and Ahmed Zaker & Co was the external auditor.
The enquiry committee found evidence of some unprofessional activities conducted by the audit firm, the stock market regulator said.
UFSL Asset Management has embezzled Tk 1.58 billion in investors' funds from the mutual funds.
Therefore, the order was issued, saying: "Ahmed Zaker & Co Chartered Accountants shall not be allowed to conduct any further audit for any mutual fund under the UFSL, and also shall not be allowed to be the auditor of any mutual funds and listed company till further instruction of the commission."
Later the company filed a writ petition with the HC challenging the legality of the BSEC decision.
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