SEC warns 9 companies of fines over unpaid dividends

Deadline set for payment distribution by Dec 15

The Securities and Exchange Commission, or SEC, has warned the directors and managing directors of nine listed companies with penalties for failing to distribute declared dividends to investors.

A deadline of Dec 15 has been set for settling the outstanding payments.

Rather than moving the companies to the ‘Z’ category, the SEC has decided to impose fines on the responsible parties.

Penalties ranging from Tk 1 million to Tk 23.5 million will be enforced if the payments are not made by the given date.

These decision were made during a meeting at SEC’s Agargaon office on Sunday, with details later shared in a press release.

The companies affected are Safko Spinning Mills, Pacific Denims, Lub-rref Bangladesh, Oryza Agro Industries, Mamun Agro Products, Krishibid Feed, Krishibid Seed Limited, BD Paints, and Associated Oxygen Limited.

According to the press release, any penalties for non-compliance will be drawn from the personal funds of each shareholder-director and managing director.

Each individual will be required to pay an equal share of the fine imposed on their respective company, it added.

The fines for each company are as follows: Safko Spinning Mills – Tk 2 million, Pacific Denims – Tk 1.3 million, Lub-rref Bangladesh – Tk 23.5 million, Oriza Agro – Tk 4.7 million, Mamun Agro – Tk 1.3 million, Krishibid Feed – Tk 1 million, Krishibid Seed – Tk 1 million, BD Paints – Tk 9.7 million, and Associated Oxygen – Tk 19.1 million.

Among these, Pacific Denims, Associated Oxygen, and Lub-rref Bangladesh had been moved to the ‘Z’ category on Sept 27, part of a larger SEC action that demoted 27 companies for non-compliance.

However, following protests from investors and a downturn in the market, the SEC reversed its decision on Oct 20, offering a chance for companies that had distributed at least 80 percent of their declared dividends to be upgraded.