Capital market tribunal to become active again: BSEC chairman
BI Report || BusinessInsider
BSEC Chairman Professor Shibli Rubayat Ul Islam opens the experimental production of C&A Textile in Chattogram on Saturday.
The capital market regulator is working to revive the activities of the capital market tribunal that has remained idle for a while.
Through the tribunal, companies that close down soon after being listed on the stock exchange will be tried and face penalties.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat Ul Islam informed the matter at the opening ceremony of the experimental production of C&A Textile in Chattogram on Saturday.
C&A Textile ceased production in 2017, less than three years after it was listed on the stock market.
BSEC chairman said, “I met the judge to activate the tribunal and the first criminal case has already been filed there.”
“We did not have an investigation department before. We recently did that and appointed officers,” added Rubayat Ul Islam.
“In the case of C&A Textiles, a criminal case will be filed against those involved in leaving the company out of operation after entering the capital market,” said BSEC Chairman.
He informed that 65 companies were sent to over-the-counter (OTC) in a single day, leaving the assets of those companies in ruins.
“We are relaunching those companies one by one and getting good results. A few companies have already moved into production,” he added.
C&A Textile was listed on the stock market in 2015. The company raised Tk 45 crore from investors through an initial public offering (IPO).
Two years later, the company ceased production.
The authorities of the company announced the stop of production on May 1, 2017, according to the demands of Accord and Alliance.
Accord and Alliance are organisations of ready-made garments buyers based in the United States and Europe respectively.
After not returning to production, the current commission took the initiative to revive the company last year after taking charge.
As part of that, in September 2021, Alif Group proposed to acquire C&A Textiles.
In October, the BSEC approved the acquisition of C&A Textiles subject to certain conditions in view of Alif Group’s proposal.
Alif Group started activities to bring C&A Textile back into production this year after getting the approval of the regulatory body.
The trial production of the company has now started by installing some new machines along with refurbishing the old machines.
