BSEC fines Wata Chemicals MD Tk 0.5m

Bangladesh Securities and Exchange Commission (BSEC) Tuesday imposed a penalty worth Tk 0.5 million on the managing director (MD) of Wata Chemicals as he concealed price sensitive information (PSI) regarding a MoU signed to restore the company's operation.

The securities regulator also decided to issue warning letter to the Wata Chemicals as the shareholding position of two sponsor-directors namely AHM Abdullah and MA Mannan was not presented properly in the shareholding statement for April, 2014.

The decision was taken at a meeting held at the office of the BSEC in the city.

According to BSEC information, Managing Director of Wata Chemicals Md Nazrul Islam and a general investor Abu Sadat Mohammad Sayem signed a Memorandum of Understanding (MoU) to restore the company's operation. Some conditions set in the MoU were not disclosed as price sensitive information. That's why the securities regulator imposed a penalty worth Tk 0.5 million on the managing director of Wata Chemicals.

At Tuesday's meeting, the securities regulator also decided to conduct investors' awareness programme on daily basis. The daily awareness programme will be held during 10:00am to 5:00pm at the Securities Commission Building in Agargaon.

The regulator took the initiative to ensure investors' knowledge-based participation in the capital market.

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