Stocks
Apex Foods or DSE: Who’s Concealing Information?
Allegations of insider trading have surfaced against Apex Foods Limited, a company listed on the stock market in the country. Recently, there has been a sudden surge in shareholding by the company’s executives, leading to speculation among market participants.
The company claims that the sudden increase in shareholding by more than 17 percent occurred due to the inclusion of the chairman’s wife in the board of directors. The matter has been brought to the attention of the Dhaka Stock Exchange (DSE) by the company. However, the DSE states that they have not received any information from the company regarding this issue. Investors are skeptical and uncertain about these developments, and the company’s shareholders are also expressing concerns.
Apex Foods has violated Section 1 of the Securities and Exchange Commission’s 2015 Law by failing to disclose sensitive information promptly. According to the directive, every listed issuer on the stock exchange must promptly notify the Bangladesh Securities and Exchange Commission and the relevant stock exchange (if listed on both exchanges) in writing, signed by the Chairman, CEO, or Company Secretary, along with fax and special message delivery, or courier service if available, within thirty minutes of making any material price-sensitive information available or coming into effect. The information must also be published immediately in two widely circulated daily newspapers (one in Bengali and the other in English) and an online publication to ensure maximum dissemination.
On the other hand, investors have also accused Apex Foods of violating privacy by holding a board meeting on April 20 without informing them. Although there is a provision to inform the investors about the decision of the management board by April 20, the investors still do not know about the matter. In addition, the company’s share price has increased by Tk 141.50 or 46.22% as a percentage since the company’s board meeting.
The owners and directors of Apex Foods have not made any announcement regarding the increase in their shareholding, despite their ownership share in the company increasing. The Dhaka Stock Exchange website did not show any announcement from the company regarding the purchase of shares last month. However, it was suddenly discovered that the owners and directors had acquired a significant number of shares, although there was no explanation given on the DSE website.
When asked about this, the company’s secretary Kamrul Islam stated to the news media Orthosongbad that the owners and directors did not purchase any shares. Therefore, there is no such information available on the Dhaka Stock Exchange. However, the wife of the company’s chairman, Jafar Ahmed, held 17.33% of the shares. She was previously a regular shareholder but was recently included in the board of directors. As a result, her shares are now combined with those of the owners and directors.
He further stated that the matter of appointing the chairman’s wife to the company’s board of directors was communicated to the DSE two or three days ago. Although the information was conveyed to the DSE regarding the inclusion of the chairman’s wife in the board of directors of Apex Foods, it has not been publicized through the trading system by the exchange.
The Managing Director of the Dhaka Stock Exchange, Mr. M. Saifur Rahman Majumdar, stated that the DSE was not informed by the company about the appointment of new directors in Apex Foods. Only the shareholder position is reported to the DSE at the end of each month, and the shareholder position has been updated accordingly. Apex Foods will be blamed as to why the appointment of the new director was not informed to DSE.
According to sources, Apex Foods had a shareholding of 36.06% among the company’s directors and executives until June 30, 2022, as stated on the DSE website. The same amount of shares was also held by the company’s directors and executives in the following year’s March. However, based on the recent information provided to the Dhaka Stock Exchange and the Apex Foods website, the company’s directors and executives currently hold 30 lakh 44 thousand 450 shares, which accounts for 53.39% of the total shares. Therefore, there has been an increase of 17.33% in the shareholding of the company’s directors and executives within a month.
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, December 5, ended with price Index hikes & turnover drops. This information is known from DSE sources.
460 crore shares were traded on this day. 31 crore 78 lakh less trading was done in DSE today compared to the previous workday, 4 December, Shares worth Tk 491 crores 78 lakh shares were traded last time, Monday.
The benchmark DSEX added 3.16 points or 6,247 The Shariah-based index DSES gained 1.79 points or 1,359, and the blue-chip index DS30 decreased by 0.65 points or 2,113.
Of the issues traded, 60 advanced, 94 declined and 170 remained unchanged.
Capitec Grameen Bank Growth Fund ranked top gainer on DSE, the share price increased by Tk 1.10 paisa or 10.00 percent. On this day, the share was last traded at Tk 12.10 paisa.
GQ Ball Pen Industries Limited ranked top loser on the DSE, the share price dropped by Tk 13.20 paisa or 7.51 percent. On this day, the share was last traded at Tk 162.60 paisa.
DSE topped on trade is Central Pharmaceuticals Limited 25 crore 58 lakh takas of shares of the company have been traded.
A total of 62 companies’ shares were traded in the Block on the Dhaka Stock Exchange, 41 lakh 30 thousand 415 shares of the companies were traded. The financial value of which is 18 crore 12 lakh taka.
Dhaka Stock Exchange DSE, Bourse on the second working day of the week, December 4, ended with price Index & turnover hikes. This information is known from DSE sources.
491 crore 78 lakh shares were traded on this day. 142 crore 77 lakh more trading was done in DSE today compared to the previous workday, 30 November, Shares worth Tk 349 crores 1 lakh shares were traded last time, Sunday.
The benchmark DSEX added 12.45 points or 6,244 The Shariah-based index DSES gained 1.92 points or 1,357, and the blue-chip index DS30 increased by 5.69 points or 2,114.
Of the issues traded, 107 advanced, 49 declined and 169 remained unchanged.
Bangladesh Autocars Limited ranked top gainer on DSE, the share price increased by Tk 13.10 paisa or 9.95 percent. On this day, the share was last traded at Tk 144.70 paisa.
Jute Spinners Limited ranked top loser on the DSE, the share price dropped by Tk 13.50 paisa or 4.13 percent. On this day, the share was last traded at Tk 313.10 paisa.
DSE topped on trade is Khulna Printing and Packaging Limited 27 crore 24 lakh takas of shares of the company have been traded.
A total of 54 companies’ shares were traded in the Block on the Dhaka Stock Exchange, 37 lakh 64 thousand 536 shares of the companies were traded. The financial value of which is 28 crore taka.
The Bangladesh Securities and Exchange Commission (BSEC) has undergone significant restructuring, bringing about substantial changes in the responsibilities of officials from commissioners to assistant directors. According to BSEC sources, this restructuring involves the reassignment of two commissioners, four executive directors, eight directors, two additional directors, and eight assistant directors to different departments.
As per BSEC, Professor Dr. Sheikh Shamsuddin Ahmed, the Commissioner has been assigned the responsibility of the Division of Issuer Companies Affairs, Corporate Finance, and Financial Literacy Division within the Market and Intermediaries Affairs Division. On the other hand, the Chief Accountant Division’s responsibility has been given to another BSEC Commissioner, M. Abdul Halim.
Additionally, Abdul Halim has been entrusted with the Market Intelligence and Investigation Division and Derivatives Division. Meanwhile, he will also oversee the duties of the Chief Accountant Division. BSEC Chairman Professor Shibli Rubayat-Ul-Islam will directly oversee the Administration and Finance Division and the Commission’s Secretariat Division.
Mohammad Anwarul Islam, the Executive Director of BSEC, has been assigned the responsibilities of the Derivatives and Research and Development Divisions. Simultaneously, he will be responsible for the Investment Management Division. Executive Director Mohammad Rezaul Karim will oversee the responsibilities of the Compliance Division in addition to his existing role in the Legal Division. Executive Director Mohammad Shafiul Azam has been assigned to the Financial Literacy Division. Executive Director Mohammad Jahangir Alam has been given charge of the Market and Intermediaries Affairs Division. Besides, the responsibilities of eight directors, two additional directors and eight assistant directors of BSEC have been redistributed.
BSEC Secretary Division’s responsibilities have been assigned to Director General Muhammad Mahmudul Haque. Director General Pradip Kumar Basak will continue to oversee the responsibilities of the Administration and Finance Division, with additional duties in the Accounts and Finance Department. Director General Mohammad Abul Kalam will manage the responsibilities of the Division of Issuer Companies Affairs, alongside his role as the Chief Accountant of the Division. Director General Md. Mansoor Rahman has been assigned the responsibility of the existing Issuer Company Affairs Division as well as the Market and Intermediaries Affairs Division. Director Mohammad Abul Hasan has been given the responsibility of the Investment Management Division and Derivatives Division.
The Division of Derivatives and the Derivatives Division will be led by Director General Sheikh Mahbubur Rahman. Furthermore, Director General Abu Rayhan Mohammad Mutasim will be in charge of the Internal Audit and Compliance Division, in addition to his role in the Research and Development Division. Director General Mohammad Fakhrul Islam Mojumdar will assume responsibilities for the Corporate Finance Division and the Enforcement Division. Lastly, Director General Mohammad Fakhrul Islam Majumder will head the Corporate Finance Division and the Enforcement Division.
