Probe panel against Meghna Pet, Meghna Condensed Milk

The Bangladesh Securities and Exchange Commission (BSEC) has formed a committee to inquire into the financial performance of Meghna Pet Industries and Meghna Condensed Milk Industries Limited. 

A four-member committee led by BSEC Joint Director Md Saiful Islam was asked to submit the probe report within 30 working days, according to a notice issued by the securities regulator on Tuesday.

Other members of the committee are the BSEC Deputy Director Shahrier Perves, Assistant Director Md Minhaz Bin Salim, and Dhaka Stock Exchange (DSE) Senior Executive Md Rasel Rahman.

“The commission orders an inquiry into the affairs of Meghna Pet Industries and Meghna Condensed Milk Industries and their related issues,” said the BSEC.

In the last year, the BSEC had instructed the companies to raise their paid-up capital to Tk 30 crore by June this year—a move seen by analysts as a boon for junk companies and a bane for good companies.

Earlier, the DSE inspection found the factories of two listed concerns of the Meghna Group of Industries-KA Limited closed.

The two companies released their financial statements and held annual general meetings regularly, but did not inform investors about the factory shutdown.

Meghna Pet Industries, another ‘Z’ category company, started business in 1997. It mainly produces PET
bottles.

Meghna Condensed Milk started operations in 1999 with the announcement of setting up the largest condensed milk plant in the country. It got listed on the stock market in 2001.

On Tuesday, share price of Meghna Condensed Milk Industries declined 1.86 per cent to Tk 21.10 and Meghna PET Industries fell 1.98 per cent to Tk 24.70 on the Dhaka Stock Exchange.