The BSEC will seek explanations from 32 companies for paying less dividends

Staff Reporter: The 32 companies listed on the stock exchange have declared a dividend of 5 percent or less to the shareholders. Many of these companies did good business but paid small dividends to shareholders.

The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the stock market, has decided to seek clarification from companies paying less than 5 per cent dividend to verify the veracity. Relevant sources said that a letter will be sent to the companies soon.

Among the companies that paid dividends to the shareholders below 5 percent, 3 companies paid dividends of 0.50 percent. The companies are Active Fine Chemicals, AFC Agro Biotech and Samata Leather Complex. 6 companies have paid 1 percent dividend.

The companies are Olympic Accessories, Rahima Food Corporation, Pacific Denims, Far Chemical Industries, Haqqani Pulp and Paper Mills, Legacy Footwear, Standard Ceramic Industries and Sea Pearl Beach Resort and Spa. 10 companies have paid 2 percent dividend.

The companies are: BD Thai Aluminum, Bangladesh Building Systems, Intraco Refueling Station, Prime Textile Spinning Mills, Anlima Yarn Dyeing, Alif Manufacturing, Evans Textile, Salvo Chemical Industries, Advent Pharma and F.

Besides, 3 companies have paid 2.50 percent dividend. The companies are Tasrifa Industries, Shepherd Industries and Shinepukur Ceramics. Golden Year pays 2.75 percent dividend. Two companies have paid 3 percent dividend. The companies are Rangpur Dairy and Food Products and Mozaffar Hossain Spinning Mills. Agni Systems paid a dividend of 3.50 percent. 3 companies have paid 4 percent dividend. The companies are Bangladesh Autocars, Bangaj, Simtex Industries and Indo Bangla Pharmaceuticals.

It is learned that despite the business profits, several companies have recently paid a small amount of dividends to the shareholders after reviewing the audited financial statements for the last financial year (December 31, 2020 and June 30, 2021).

They are frustrated by not getting the expected dividend by investing in it throughout the year. As a result, the commission thinks that the matter is against the interest of the shareholders. So whether the companies have hidden profits will be examined case by case.

The rate of dividend will be checked against the profit of the companies. It will also check whether the company’s income is consistent with its production. The BSEC will look into all these before the annual general meeting of the companies.

A senior BSEC official, who did not want to be named, said that the companies which are not paying dividends in the last financial year are being monitored by the BSEC. Companies will be asked to explain why they do not pay dividends. The commission is very sincere so that ordinary investors can get dividends. The commission will do everything possible to protect the interests of investors.

Source: Daily StockBangladesh by

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