Khulna Power directors barred from selling shares
The stock market regulator yesterday barred Khulna Power's directors, sponsors and shareholders with more than 10 percent stakes from disposing their shares after the company failed to disclose price-sensitive information properly.
The contract between Khulna Power, a 110 megawatt power plant, and Bangladesh Power Development Board had expired on October 11 but the company did not articulate the development clearly, said the Bangladesh Securities and Exchange Commission.
At the same time, sponsors and directors of the company began selling their shares.
At the commission meeting yesterday, the BSEC has now decided to form a committee to investigate the matter. Until the case is closed, Khulna Power's directors, sponsors and major shareholders are forbidden from selling their shares or transferring them.
Meanwhile, the issuer informed yesterday through a posting on the Dhaka Stock Exchange website in response to a query from the bourse that they are in discussions with the BPDB about the resumption of supply from the plant.
Furthermore, the tenure of the agreement was clearly mentioned in the audited financial statements for financial year 2016-17, which was shared with the BSEC and the stock exchanges.
Also at the commission meeting the BSEC decided to fine the managing director and shareholder directors of Central Pharmaceuticals Tk 4 lakh each as the company hid the qualified opinion of the auditor in the financial report.
The auditor said in their opinion that the drug maker exaggerated its profit by not showing some costs. The company also spent cash instead of using the banking channel.
The BSEC also approved the initial public offering of New Lines Clothing. The company will withdraw capital of Tk 30 crore by issuing 3 crore shares at Tk 10, which is also the face value of the stock.
The IPO proceeds will be utilised to purchase machinery, factory building expansion and bank loan repayment.
