Securities rule violations: Directors of M I Cement, Intech fined

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday fined each director of M. I. Cement Factory Limited., the parent company of Crown Cement Group and Intech Limited, sparing the independent and nominee directors, for violations of securities laws.

The securities market regulator BSEC took the decision at a commission meeting held in Dhaka on Tuesday. According to BSEC’s official statement, its chairman Prof Shibli Rubayat Ul Islam presided over the meeting.

Each director of M. I. Cement Factory Ltd was fined Tk10 lakh and that of the IT company, Intech Limited Tk25 lakh.

Meanwhile, Al Faruque Bags Limited has involved in irregularities before coming to the stock market. For this, BSEC Tuesday fined the company Tk 10 lakh. Besides, the company’s two issue managers have been fined Tk 10 lakh and audit firms have been fined Tk 2 lakh for violations of guidelines on corporate governance.

In September, 2018, MI Cement has provided interest free loans to its sister concern. But shareholders’ approval was not sought at the company’s annual general meeting before the loan disbursed. For this violation, each director of the company was fined Tk10 lakh.

As per BSEC statement, Intech Limited’s board of directors did not disclose the price sensitive information (PSI) regarding the expansion of the business to different sectors. In addition, the company’s board of directors did not hold a minimum share. For this violation, each director of the company was fined Tk25 lakh.