Panel formed to investigate share discrepancy in Rahima Food Corporation

The Bangladesh Securities and Exchange Commission (BSEC) has formed an investigation committee to determine whether the issued shares and paid-up capital of Rahima Food Corporation are accurate and relevant.

The stock market regulator formed a three-member committee today and directed it to submit a report within 15 days.

The committee members include Muhammad Ziaur Rahman, additional director of the BSEC; Md Rokibul Islam, manager of the Dhaka Stock Exchange (DSE), and Kazi Minhaz Uddin, assistant general manager of the Central Depository of Bangladesh Ltd (CDBL), according to an order by the BSEC.

The commission has instructed the committee to investigate whether a consistency is there in the number of shares recorded in the CDBL, the company's registry and the Office of the Registrar of Joint Stock Companies and Firms.

The committee has also been tasked with reviewing whether there are any discrepancies in the suspense account of its beneficiary owner's accounts.

Additionally, they will examine the current shareholding status of the board members and investigate whether any unauthorised shares were issued during the conversion of shares from paper to electronic format.

Also, the BSEC has directed the committee to investigate why the company failed to address several allegations raised by its stock investors.

Rahima Food Corporation, incorporated in 1990 as a private limited company, entered the stock market in 1997.

However, on July 19, 2018, the DSE delisted its shares due to prolonged inactivity.

The company was relisted in 2020, and its share trading resumed under the "A" category after more than two years, following its acquisition by the City Group.