BSEC fines Shahjibazar bosses Tk 55 lakh for fabricated reports

October 30, 2014

United Power, audit firm, asset manager fined for IPO doc fabrication
The Bangladesh Securities and Exchange Commission on Wednesday slapped Tk 55 lakh fines on Shahjibazar Power Company’s five directors and managing director on charge of providing fabricated financial statements. The commission, in a separate decision, also fined United Power Generation and Distribution Company, its issue manager and an auditor on the same ground by Tk 5 lakh collectively.
The capital market regulator made the decisions in a commission meeting presided by its chairman M Khairul Hossain, a BSEC release said on the day.
The BSEC on the day fined directors of Shahjibazar Tk 10 lakh each and managing director Feroz Alam Tk 5 lakh for violating securities rules by providing misleading financial information, the BSEC release said.
The commission also decided to take enforcement action against the chief financial officer of Shahjibazar on the same ground, it said.
The BSEC release said Shahjibazar Power Company overstated its earning per share to Tk 2.54 in its financial statement for the year ended in March 2014.
The commission following a special audit downgraded Shahjibazar’s EPS to Tk 1.48.
The BSEC on August 11 suspended trading of Shahjibazar following abnormal increase of its share prices.
The commission on October 21 withdrew the Shahjibazar’s suspension and revised its net profit after tax to Tk 16.86 crore and EPS to Tk 1.48 for the period of July 13 to September 14 from Tk 28.54 crore and EPS of Tk 2.50 respectively.
Share prices of Shahjibazar continued to hit the roof for the tenth trading session on Wednesday, including four trading sessions before its trading was suspended on August 11.
Share price of the company stood at Tk 190.70 on Wednesday from Tk 73.80 on August 6, DSE data showed.
Meanwhile, the stock market regulator in separate decisions, decided to fine United Power Generation and Distribution Company Tk 2 lakh, LankaBangla Investments, the issue manager of UPGD, Tk 1 lakh and the auditor of UPGD, Hoda Vasi Chowdhury and Company, Tk 2 lakh for their involvement in providing fabricated financial information of the issuer company in its the financial statement of 2013.
United Power has already completed the bidding process for initial public offering for floating its shares to the capital market through book building method.
The BSEC also fined Island Securities Tk 1 lakh for short selling 2,200 shares of Bangladesh Submarine Cable Company violating DSE regulations.

-With New Age input

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