The stock-market regulator has decided to take enforcement action and file a case against Nurani Dyeing and Sweater Ltd. for allegedly providing false information in its financials and embezzling IPO funds.
The decision was taken at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Wednesday with its Chairman Prof Shibli Rubayat-Ul-Islam in the chair, said a BSEC statement.
According to the Dhaka Stock Exchange's (DSE) and BSEC's investigative reports, Nurani Dying, its sponsor/director, the issue manager concerned, statutory auditor of that time and IPO fund utilisation auditor have defrauded the shareholders in various ways, which is a violation of securities rules.
So, the BSEC has decided to take enforcement action against them and file criminal cases, the BSEC statement said. The company had raised Tk 430 million through IPO in 2017.
The firm, listed on the stock exchange in 2017, submitted false financial information and fake supporting documents from the outset when it had planned to go public.
It had also been filing fake turnover and IPO fund utilisation reports until an inspection by DSE in mid-2020 found its factory permanently closed.
Each share of the company closed at Tk 7.0 on the DSE on Wednesday. Its shares traded between Tk 6.20 and 10.10 each in the last one year.