5 firms asked to explain failure to file dividend compliance report

The Dhaka Stock Exchange (DSE) has asked five listed companies to explain their failure to submit their cash dividend disbursement reports to the country's premier bourse by the stipulated time.

An official at the DSE said if the companies – National Tea Company Limited, Sonali Aansh Industries Limited, Western Marine Shipyard Limited, Bangladesh Autocars Limited, and Bangas Limited – have not yet disbursed dividends it will be a punishable offence.

According to the DSE, for fiscal 2020-21 shareholders, National Tea declared a 10% cash dividend, Sonali Aansh Industries 10%, Western Marine Shipyard 1%, BD Autocars 4%, and Bangas 4%.

The premier bourse recently queried the companies regarding their payout of the declared cash dividends, said a source at the DSE.

Company officials say they have already disbursed their declared cash dividends within the stipulated time and sent the compliance reports to the authorities concerned. They were caught off guard by the letters from the DSE.

BD Autocars Company Secretary Md Shariful Islam told The Business Standard (TBS), "We paid the declared cash dividends to our shareholders in time and also submitted the compliance report. We have no idea about why the DSE query."

However, a senior officer at Sonali Aansh Industries said on condition of anonymity that the company submitted the report following a previous form of the securities regulator. But the regulator changed the form in 2021 and the DSE asked the company to submit the report on the updated form.

He said, the latest system requires a lot of inputs and the company will need more time to do that.

According to the BSEC directive issued on 14 January 2021, listed companies shall pay off cash dividends within 10 days of the declaration by their boards.

It said listed companies shall submit a compliance report to the securities regulator and the stock exchanges in a specified format within seven days of completing dividend distributions.