12 listed NBFIs fail to offer dividends on time

Five months into the deadline, most non-banking financial institutions (NBFIs) have failed to offer dividends for 2021 on time.

Delays in dividend declaration have far-reaching consequences for companies and even for their shareholders, analysts say.

Investors are deprived of financial data that helps them take investment decisions, they added.

Every listed company must recommend dividends within three months after the end of the calendar or financial year.

Out of 23 listed NBFIs, 12 failed to declare dividends for 2021 on time and first-quarter reports (January-March), according to the Dhaka Stock Exchange.

BSEC Commissioner Mizanur Rahman said, “It is mandatory for all listed companies to recommend dividends on time and also publish the financial reports on their websites and file to the regulatory bodies. For various reasons, some companies fail to do so. The regulator can extend the submission deadline if they show valid reasons for the delay.”

But legal action would be taken against those who deliberately do so, he warned.

The NBFIs claimed that they submitted their financial reports on time to the Bangladesh Bank for approval.

“We’ve submitted the financial report timely to the Bangladesh Bank. Our report is yet to be cleared,” Phoenix Finance and Investment Limited Secretary Saiduzzaman told The Business Post.

Bangladesh Bank spokesperson Sirajul Islam said each company has a specific time to pay dividends and publish financial reports. “Bangladesh Bank reviews the financial statements of banks and financial institutions. We need to look into why the delay is happening for NBFIs.”

Dhaka Stock Exchange (DSE) Director Shakil Rizvi said each company needs to offer dividends and publish the financial reports on time so that investors can make the right investment decision at the right time.

Easy access to the financial data helps make the market more mature too, he added.

According to listing rules, listed companies must publish their financial statements in the national dailies immediately after the end of the financial year. And it should be published on the company’s websites immediately after the annual general meeting. Many companies do not comply with the rules.

DSE has been working to ensure that all companies are run in line with the rules and regulations, said the DSE director.