The Bangladesh Securities and Exchange Commission (BSEC) has ordered a probe against mobile operator Robi Axiata PLC to ensure transparency in the capital market and protect the interests of investors.
A special order recently issued by the BSEC's Market Intelligence and Investigation Division has set the scope and terms of the probe.
It has been ordered to examine the company's recent financial activities, accuracy of information disclosure and compliance with existing laws and regulations.
According to BSEC sources, Robi is accused of showing operating expenses as capital expenditure in the fiscal years 2020-21 and 2021-22.
Whether the real financial picture has been hidden or not will be verified through an investigation.
The investigation will also examine the extent of irregularities in such accounting practices, who benefited from them and the financial impact.
The commission also said that the role of the company's Chief Executive Officer (CEO), Chief Financial Officer (CFO) and the audit committee will be reviewed in this regard.
The investigation will also focus on the dual role of Robi chairman Thayaparan S Sangarapillai. He was a director of tower infrastructure company Edotco Group from 2016 to 2025.
It will be verified whether the various transactions, lease agreements and share transfers between Robi and Edotco were completed independently and impartially.
In addition, the investigation will also examine whether assets, income or profits were transferred from Robi to the parent company or related entities in an opaque or irregular manner.
The BSEC letter said that two independent directors of the company, Akhtar Sanjida Kashem and Kamran Bakr, resigned.
Their resignations were based on allegations of 'undue interference', which have been brought under investigation.
The commission has also questioned the impartiality of the internal investigation led by chairman Sangarapillai.
It will be examined to what extent the investigation was impartial, especially in the context of previous allegations against him.
The investigation will also examine whether Robi's board of directors and investigation committee followed the principles of due process, impartiality and shareholder protection.
The BSEC will also investigate whether important information was concealed in Robi Axiata's annual reports for 2021 and 2022. In particular, it will be examined whether the rules were followed in disclosing related party transactions and important financial information.
In addition, the investigation has also included allegations of not providing satisfactory answers to various questions raised by shareholders at the last annual general meeting (AGM), especially questions on legal expenses and forensic investigation expenses.
BSEC said that any other related matters may also be brought under investigation if necessary during the investigation.