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ENOUGH sermons-cum-priestly utterances are often voiced through print and electronic media by the Securities and Exchange Commission (SEC) in respect of the capital market, investors' problems, benefits of effective share markets and so on. But as a small investor in primary shares and right shares in two dozen public limited companies (PLC) my experience is too bitter to return to investing in shares though SEC approved company prospectuses as indicate fat return on investments.
A good number of PLCs do not hold their annual general meeting (AGM) for years. Some do not pay the dividend after declaring it at the AGMs, some do not at all declare dividend for years while some declare insignificant dividend which results in very low prices of their shares at the stock markets. A joint venture with China could manage to raise share capital in January 1991 but till-date this PLC, known as the Magura Paper of Magura Group, did not pay any dividend and even could not be listed in the stock exchanges for transactions. The performances of Public limited companies, like the Excelsior Shoes, Mark BD Shilpa, Gachihata Aquafarm, Meghna Shrimp, Monafood, Beximco Tex, Beximco Fisheries, Shine Pukur Holdings, Chic Tex, MAQ Enterprises, MAQ Paper, Niloy Cement, Nitol Insurance, Monno Fabric etc., identify them as black sheep PLCs. There are many others of the same category.
Criminal proceedings should be drawn against the fraudulent PLCs to award penalties including jail terms, as is the practice in the USA and elsewhere in developed world. The same punitive action was taken in cases of Worldcom, Enron, Permalat etc. We may hold dozens of seminars on eradication of corruption, transparency in PLCs but our position as the champion of corruption will remain permanent unless, I believe, regulatory bodies like SEC translate their tall talks into deeds to bring the wrong doers to justice. Bare publicity of 1996 share market scandal is not at all pious living.
Mahbubur Rahman
34 Khan A Sabur Road
Khulna
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