The securities regulator has imposed an aggregate fine of Tk 13.5 million on the chairman, directors and senior officials of Aftab Automobiles for failing to distribute the declared dividends within the stipulated time.
The Bangladesh Securities and Exchange Commission (BSEC) has also ordered the company to distribute the outstanding dividend for the financial year ended June 2024 among investors within 30 days of the enforcement order issued on Thursday.
The penalties were imposed on the company's chairman, three directors, managing director, chief financial officer (CFO) and company secretary for violating securities laws relating to dividend distribution and compliance reporting.
The regulator fined Aftab Automobiles Chairman Shafiul Islam and Managing Director Saiful Islam Tk 3 million each, while directors Khaleda Islam, Sajedul Islam and Farhana Islam were each fined Tk 2 million.
The BSEC also fined Sahadat Hossain Miah, chief financial officer, Tk 1 million, and Rahat Mahmud, company secretary, Tk 0.5 million.
The penalties will be treated as the personal liabilities of the respective individuals. The fines must be paid to the BSEC through bank drafts or pay orders.
Failure to pay the fines within the prescribed period will result in an additional fine of Tk 10,000 per day until payment, according to the order.
The commission also made it clear that payment of the fines will not absolve the company of its obligation to distribute the outstanding dividends.
According to the BSEC enforcement order, Aftab Automobiles' board declared a 10 per cent cash dividend for the year ended June 2024, which was approved by shareholders at the annual general meeting (AGM) held in December 2024.
Under the securities laws, the final dividend was required to be paid within 30 days of its approval at the AGM. Accordingly, the dividend was due by January 23, 2025.
The regulator found that the company failed to distribute the declared dividends within the prescribed timeframe and also failed to submit the required dividend compliance report.
The enforcement action followed a show-cause notice issued by the BSEC's enforcement division on November 3, 2025. A hearing was subsequently held on November 17, 2025, at which company representatives explained the reasons for the delay.
The representatives said Aftab Automobiles had already paid 84.34 per cent of the total dividends payable, while the management had initially committed to paying the remaining amount by November 2025.
However, citing the company's financial constraints, they said it was not possible to arrange the remaining funds within the stipulated timeframe.
The company requested an extension until December 2025 to complete the dividend payment but again failed to distribute the dividends within the extended time.
Meanwhile, the company incurred a loss of Tk 148 million in FY24 and Tk 144 million in FY25. It also reported a loss of Tk 125 million in the nine months through March this year.
