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BSEC fines Tk 5 lakh to Alif Asset Management

Dhaka, Tuesday


25 February 2025


Business Insider Bangladesh

BSEC fines Tk 5 lakh to Alif Asset Management

BI Report || BusinessInsider

Published: 20:13, 13 December 2022  
BSEC fines Tk 5 lakh to Alif Asset Management

Alif Asset Management Company Limited logo.

Bangladesh Securities and Exchange Commission (BSEC) has fined Alif Asset Management Company Limited Tk 5 lakh for failing to file its audited financial statements for the financial year 2020-21.

A BSEC official said the company has not filed any information related to business operations in the last few years. Besides, although the company has a lot of cash, it could not provide any proper explanation and evidence of the cash.

Through these, Asset Management Company Authority violated rules of the Securities and Exchange Commission (Mutual Fund).

According to BSEC officials, on January 30 this year, Alif Assets Management Authority was summoned for a show cause hearing.

The chief executive officer of Alif Assets Management said in a written statement that they could not prepare financial accounts due to the pandemic and nationwide lockdown.

Furthermore, he said, the cash was with the company since its inception, which the CEO claimed, has been verified by the auditor.

However, the company’s net worth of the paid-up capital of Tk 5 crore has fallen below that and it will be met, they said.

After the hearing, the commission directed Alif Asset Management to raise its net assets to Tk 5 crore by August 2022. Otherwise, it also decided to impose a fine of Tk 5 lakh. The decision was communicated to Alif Asset Management through a letter on June 14.

However, Alif Asset Management Authority failed to fulfil it, which is an offense punishable under Section 18 of the Securities and Exchange Commission Act, 1993.

Mohammed Rezaul Karim, executive director and spokesperson of BSEC said, the commission considers it appropriate to fine Alif Asset Management for the sake of the development of the stock market, order and transparency in the market.

Because of this, the commission fined the company Tk 5 lakh. The commission has recently informed about this punishment through a letter, he added.