BSEC rejects stock dividends of Paper Processing, Monospool Paper
The Bangladesh Securities and Exchange Commission (BSEC) has denied two Magura Group concerns – Bangladesh Monospool Paper Manufacturing Company and Paper Processing and Packaging – permission to issue stock dividends for the fiscal 2021-22.
According to BSEC sources, both the companies have failed to meet the regulatory requirement to issue stock dividends.
For FY22, Monospool recommended 10% cash and 10% stock dividends, and Paper Processing 8% cash and 7% stock dividends for their shareholders.
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The companies had paid cash and stock dividends in FY21 as well.
The two firms had already secured the approval of their shareholders about the issuance of the dividends for FY22 in their annual general meetings. But the BSEC did not approve their stock dividends because they did not declare at least 10% cash dividends for two consecutive years, as directed by the commission in August 2021.
Before returning to the main board of the Dhaka Stock Exchange in 2021, the companies each paid 200% stock dividends for FY20.
Both the companies' share prices skyrocketed after they returned to the main board.
In February 2022, Paper Processing's factory was closed, and with the BSEC's permission, its three sponsors sold their shares to repay loans.
