The Securities and Exchange Commission (SEC) and the Dhaka Stock Exchange (DSE) are now at loggerheads over de-listing of Eagle Box and Carton Manufacturing Company Ltd, a Z-category listed company.
Trading of the company's shares had been remaining suspended on the DSE since July 13, 2004.
The bickering erupted in the first week of this month when DSE sent a letter to the company to take necessary steps to buy back its shares from the investors.
Earlier on January 3 the SEC directed the bourse to de-list the company within two months from issuance of the directive.
The SEC Tuesday sent two separate letters to both the president and the chief executive officer (CEO) of DSE seeking explanations from them on the said DSE letter.
"You are requested to submit a written explanation as to how the DSE board decided to send such a letter violating the SEC directive of January 3 within next seven days," the SEC letter to the DSE president said.
SEC sources said the DSE board adopted a resolution without any lawful authority on the Eagle Box issue.
In another letter to the DSE CEO, the SEC asked him to send the list of directors who attended the DSE board meeting on January 8.
"We also asked him to send the note of dissent given by any DSE director on the de-listing issue of the said company," an SEC source said.
The SEC in another letter Tuesday directed the company's managing director to disregard the DSE directive to deposit the balance funds for buying back the remaining outstanding shares to the Commission.
The regulatory body had also issued a directive on January 3 asking the chairman and the sponsor directors of the company to pay the money to the public and institutional shareholders immediately.
The company will have to pay Tk 25.90, the last traded price, for each share to valid shareholders.
The company had submitted an application on October 11, 2004 for de-listing of its shares from the DSE on the grounds of closure of commercial operations since October 31, 2003 due to heavy financial loss.
All the company employees were terminated after disbursement of their fiscal benefits.