The Bangladesh Securities and Exchange Commission on Thursday formed an inquiry committee to investigate alleged illegal activities done by Md Zahidul Haque, managing director of Shurwid Industries Limited, a newly-listed company at the capital market, a BSEC news release said. The two-member committee has been asked to submit its report within 10 working days, the release said.
BSEC deputy director Mohammad Nazrul Islam and assistant director Mohammad Asif Iqbal are the members of the committee.
BSEC officials said the allegations against Zahidul were that he held the post of managing director of the company for 10 years in a row without having any legal coverage and hid the information in the company’s prospectus.
The BSEC has made the move as hiding information in the prospectus is violation of the securities rules, the officials said.
The BSEC on April 1 approved the initial public offering of Shurwid Industries and the company raised Tk 14 crore floating 1.40 crore shares at an issue price of Tk 10 each.
As per the BSEC’s approval, Shurwid Industries raised the fund through the IPO to meet the cost of factory building expansion, to purchase machinery, generators, and to repay bank loans and IPO expenses.
ICB Capital Management was the issue manager of the company’s IPO.
-With New Age input
