BSEC orders Aftab Auto to pay pending dividend or face Tk1.35cr fine

The Bangladesh Securities and Exchange Commission (BSEC) has directed Aftab Automobiles Limited to disburse its unpaid dividend within 30 days or face total fines of Tk1.35 crore on its board of directors and top management.

The enforcement action comes after the company failed to distribute a declared 10% cash dividend for FY24 within the mandatory 30-day timeline following its Annual General Meeting on 24 December 2024. In addition to missing the 23 January 2025 deadline, the company violated securities rules and DSE listing regulations by failing to submit the required dividend compliance report.

According to the order issued on 31 August 2026 and circulated on 7 September 2026, if Aftab Automobiles fails to disburse the pending dividend within 30 days, individual financial penalties will be imposed on key officials. Chairman Shafiul Islam and Managing Director Saiful Islam will each face a Tk30 lakh fine. Directors Khaleda Islam, Sajedul Islam, and Farhana Islam will be fined Tk20 lakh each, while former Chief Financial Officer Sahadat Hossain Miah and former Company Secretary Rahat Mahmud will face fines of Tk10 lakh and Tk5 lakh, respectively.

The market regulator specified that the fines must be paid out of personal liabilities within seven working days after the grace period expires. Continued failure to settle the fines will attract an additional penalty of Tk10,000 per day for each individual. The commission also stressed that payment of these fines will not exempt the company from its legal obligation to clear all outstanding dividend payments to general shareholders.

During an earlier hearing, representatives of Aftab Automobiles admitted that the company had paid 84.34% of the total dividend but was unable to clear the remaining balance due to severe financial constraints. However, BSEC rejected the explanation, stating that non-compliance compromises investor interests and hurts overall market discipline.