Refusal to list controversial Coppertech on DSE costs Majedur’s job


his refusal to list controversial Coppertech Industries on the bourse, said sources at BSEC and DSE.

The BSEC at a commission meeting on July 23 made the decision of rejecting reappointment of Majedur, whose tenure ended on July 11.

In a letter to the DSE, the commission did not mention any reason for the refusal.

It was the first time that the BSEC declined a DSE’S proposal regarding its MD.

Majedur on July 11, 2016 joined the DSE as managing director for a three-year term.

The DSE’ board of directors in June this year approved time extension for Majedur and sought permission from the BSEC in this regard.

A number of BSEC officials said that Majedur’s tenure was not extended due to his role in Coppertech’s listing issue.

A DSE director said that the BSEC did not extend Majedur’s tenure as he stood firm against the listing of Coppertech, a little-known company which allegedly manipulated its financial data to float an initial public offering and to get listed on the country’s bourses.

As the media exposed a number of data manipulation in the Coppertech’s financial statements and the DSE also found the media reports correct, Majedur raised the issues before the DSE board and halted the listing process of the company.

Despite a huge pressure from the government high-ups in favour of the company’s listing, Majedur refused to give listing approval to Coppertech before the allegations against the company were investigated, said DSE sources.

After Majedur’s tenure ended, the DSE board members, who were previously against listing a controversial company, agreed to list it on the bourse.

Observing that the DSE was unwilling to give listing approval to Coppertech, the BSEC ordered the bourse to pay the share subscription money to the company’s bank account, putting more pressure on the bourse.

The DSE had informed the BSEC about all the anomalies in the company’s financial statements and sought BSEC’s directive regarding the issue.

The market regulator, however, did not look into the matter, DSE sources said.

However, the BSEC on July 24 asked the DSE to list  Coppertech within 10 working days.

Copperetch is another controversial IPO like Appollo Isphat and Khulna Paper and Printing Company that has made its way to the country’s capital market in the era of current BSEC chairman M Khairul Hossain.

The media reported that Coppertech had taken fraudulent path to be listed on the stock market.

The bank statements that the company submitted with its IPO documents showed a number of unusual and suspicious transactions on share money deposit (money for selling shares) that raised question about its paid-up capital formation.

Though the BSEC ignored the issue, the Financial Reporting Council felt it necessary to direct the Institute of Chartered Accountants of Bangladesh to investigate the matter. But, the ICAB failed to complete the inquiry into the Copperetch’s financial data as Copperetch’s auditor Ahmad and Akhtar declined to cooperate with the ICAB.

The BSEC was not happy with Majedur not only for his role in the Coppertech issue, but also for his role in a number of other issues including choosing a strategic investor for the DSE, sources said.

The BSEC had pressed the DSE to choose an Indian National Stock Exchange-led consortium despite the fact that a consortium of Shenzhen and Shanghai stock exchanges was the top bidder.

Majedur resisted the BSEC’s ‘unethical pressure’ and chose the Chinese group as the DSE strategic partner, said DSE sources.

Before his job at the DSE, Majedur worked at managerial level in the country’s banking sector for 33 years.

He has experiences in stock market operations, strategic planning business development and balance sheet management.