The Dhaka Stock Exchange (DSE) has accused Brac Bank Ltd of breaching the listing regulations by delaying the dissemination of price sensitive information to shareholders.
DSE made the accusations in a letter sent on March 23 to the Bangladesh Securities and Exchange Commission (BSEC).
As per the DSE listing regulations, the gap between a board meeting and a record date should be at least 14 days and not more than 30 days.
On March 25, the bank’s board of directors declared a cash dividend on its common stock of 25% per share for the calendar year ending December 31, 2017. The record date is therefore April 15. But, the bank set April 11 as the record date, violating the DSE listing regulations.
Delayed dissemination of information, according to the listing regulations, an issuer of listed securities shall prepare a report about its price sensitive information within 30 minutes of a decision and submit it to the DSE and BSEC through electronic means or by special messenger or courier.
It is also required to publish the information in two widely-circulated dailies.
“We have received the allegations from DSE about violation of rules by Brac Bank in dissemination of price sensitive information,” BSEC spokesperson Saifur Rahman told the Dhaka Tribune.
“We will inform the BSEC’s enforcement department of the issues. The department will hold a hearing on the allegations and will take actions as per the law if the allegations are found true,” he added.
Rais Uddin Ahmed, company secretary, said: “DSE sought some explanation of the delay, and we have replied to its query accordingly.”
The dissemination of information among shareholders was delayed because of lack of clarification in the listing regulations, he claimed.
The bank listed in 2007.