Some companies deceive their investors: BSEC Chairman

Some companies tend to deceive their investors, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat Ul Islam has claimed.

"There are some listed companies that paid up to a capital of Tk800 crore but made profit of only Tk20 crore. So, how come they show 10% dividend to their investors? Well, they are actually deceiving their investors," he said while speaking as chief guest at a Dhaka Club seminar titled Organisational Sustainability: Role of Chartered/Companies Secretary organised by Institute of Chartered Secretaries of Bangladesh (ICSB). 

"If we see that a company could not do good business in the long run, we look into the matter. If the company's management did not run things properly, we ask the board to change the management. And if the board has a problem, we try to fix it by changing the board members," he said.

While speaking as guest, Bangladesh Association of Publicly Listed Companies (BAPLC) President and Chairman of ACI Limited Anis Ud Dowla said, "Regulators will not take any legislative measures which may create pressure in the capital market."

He also said, regulators often direct to change boards of companies without giving a chance to defend the existing members. It demotivates entrepreneurs from making investments.

Professor Shibli said, "We are also concerned about it. But some entrepreneurs come here with bad intention. They embezzle public money and flee the country. In such cases, what can we do? 

"If we file a case, it takes a lot of time to process. By then they flee. And if we try to protect the company, then investors and workers are also protected," he added.