The securities regulator has decided to freeze the shares of the directors of Shurwid Industries for submitting compliance reporting without completing the distribution of dividend for the year ended on June 30, 2019.

The Bangladesh Securities and Exchange Commission (BSEC) took the decision on Tuesday at a meeting held at the BSEC office.

"The shares of the directors of the Shurwid Industries will remain frozen until further order," said Md. Rezaul Karim, a BSEC director.

He said the securities regulator will also conduct a special audit of the financial statement of Shurwid Industries.

"The securities regulator has also asked the Dhaka Stock Exchange (DSE) to submit a report conducting an inspection of the company, said Mr. Karim, also spokesperson of the securities regulator.

As per existing rules, a listed company has to submit compliance on distribution of dividend within 30 days of holding annual general meeting (AGM).

The Board of Directors of the Shurwid Industries recommended 10 per cent cash dividend for the year ended on June 30, 2019.

According to DSE information, the company held its AGM on December 30, 2019 for the year ended on June 30, 2019.

Later, the company submitted a compliance report to the securities regulator on completion of distributing the cash dividend.

"But some investors filed complaints with the stock exchanges for not getting dividend for the year ended on June 30, 2019. That's why the BSEC has taken action against the company," said the BSEC official.