The company’s Managing Director Rukshana Morshed sold 79 lakh shares without a declaration and made Tk6.98 crore profit
The securities regulator has fined the shareholder directors and managing director of C & A Textiles Ltd for trading shares without making a declaration.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision in a meeting on Wednesday with its chairman Professor Shibli Rubayat-Ul-Islam in the chair, read a press release.
The company's Managing Director Rukshana Morshed sold 79 lakh shares without a declaration and made Tk6.98 crore profit. Its Shareholder Director Sharmin Akter Lovely sold 30 lakh shares without any declaration and made Tk3.61 crore profit.
The Bangladesh Shoe Industries Ltd, another shareholder director of the C & A Textiles, also sold 0.13 crore shares without declaration to make a profit of Tk1.59 crore.
These directors have violated the commission's two directives, which were made on July 14, 2010, and November 22, 2011.
The company's operation was closed since the sale of these shares. They were also absent in the commission hearing in this regard. When the C & A did not reply to the Dhaka Stock Exchange's (DSE) queries, a DSE team visited the factory and found it locked.
For violating the securities law, the commission has fined Managing Director Rukshana Morshed Tk8 core, Shareholder Director Sharmin Akter Lovely Tk4 crore and the Bangladesh Shoe Industries Ltd Tk2 crore.
The fined directors cannot remain as directors of any other listed companies.
For violating the securities law, the commission has also fined all directors of C & A Textiles, except the independent ones, Tk1 crore each.
The company also violated the section 35 of Dhaka Stock Exchanges (Listing) Regulation, 2015. It failed to submit the monthly shareholding report as per law from August 2017 to August 2018.
The company's sponsors and directors jointly own 22.14 percent shares, institutional investors 15.67 percent, and general investors 62.19 percent. The last trading price of each share of the company at the Dhaka Stock Exchange was Tk1.70.
The company was listed in both the stock exchanges in 2015.