Coppertech lists on CSE before clearance of allegations
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Coppertech Industries Limited has been listed on Chittagong Stock Exchange although Dhaka Stock Exchange has declined to make any decision without consent of the Bangladesh Securities and Exchange Commission following allegations of financial data fabrication against the company.
CSE officials said that a board meeting of Chittagong Stock Exchange made the decision on May 23 while Dhaka Stock Exchange decided to seek opinion from the commission on if Cop pertech was to be listed on the stock exchange.
CSE managing director Shaifur Rahman Mazumdar told New Age on Sunday that the bourse made decision as it found no specific financial flaw in the company’s financial accounts made public by the media.
He said that the bourse was bound to allow a company to list on the stock exchange within 30 days of the closure of its initial public offering subscription as per the securities rules. The bourse has no power to re-audit any financial accounts of a company, he said.
The managing director also said that if the Financial Reporting Council decided to take action against the financial data flaws, there was an option to stop trading of shares of the company.
The media recently exposed a number of financial data fabrications in the company’s accounts that came to the notice of the council that felt it necessary to conduct further investigation.
The council on May 14 asked the Institute of Chartered Accountants of Bangladesh to re-audit the Coppertech financial accounts and submit the report to it.
The institute, however, informed the council that it was unable to re-audit the company’s accounts as the auditor of the company was not providing it with necessary documents.
Institute officials said that there might be something wrong in the financial data as the auditors declined to cooperate with its regulator and the issue must be addressed.
Sources said that there was strong pressure from a powerful quarter to allow Coppertech to list on the stock exchanges.
Earlier, the finance ministry had declined to allow Appollo Ispat to list on stock exchange. Appollo, however, listed on the stock exchange letter during the current tenure of the commission. The shares of Appollo Ispat are trading below the face value.
Market experts said that CSE should not have made the decision on Coppertech before the ICAB investigation. The CSE should follow the premier bourse.
Source: http://www.newagebd.net