July 18, 2024 8:04 pm
Home Stock Market Nitol Insurance chairman among 3 fined Tk80 lakh for stock irregularities

Nitol Insurance chairman among 3 fined Tk80 lakh for stock irregularities

by fstcap

According to sources at the BSEC, Nitol Insurance Chairman AKM Monirul faced a Tk20 lakh fine for his involvement in irregularities related to Nitol Insurance’s share trading.

On 5 December, the country’s stock market regulator decided to fine Nitol Insurance Chairman AKM Monirul Hoque Tk40 lakh on two counts.

According to sources at the BSEC, AKM Monirul faced a Tk20 lakh fine for his involvement in irregularities related to Nitol Insurance’s share trading. Another equal amount was imposed for the involvement of Ukhtane Enterprise Ltd, where he served as the managing director. Ukhtane is a corporate director of Nitol Insurance.

The commission fined two other investors – Wasfia Tabassum Hoque and Salwa Tabassum Hoque – Tk20 lakh each on charges of irregularities in Nitol Insurance’s share trading.

“We have not yet received any such letter,” said Md Shakhawat Hossain, company secretary of Nitol Insurance, in response to the allegations. He dismissed the charges, stating that they had heard nothing about such irregularities.

The details of the charges were not immediately available, as the commission has not yet disclosed its decisions.

According to the last annual report, as of 31 December 2022, AKM Monirul Hoque held 32.16 lakh shares of Nitol Insurance, while Ukhtane Enterprise owned 8 lakh shares of the company.

According to the Dhaka Stock Exchange website, from August to September 2021, Nitol Insurance’s share price rose 28% to Tk68.40, which is unusual.

From November to December 2021, its share price further surged by 22% to Tk64.50 from Tk52.70.

From May to June 2022, its share price also rose 28% to Tk52.30 from Tk41.

In the last year, its share price also rose by 21% and 27% in two phases.

On Sunday, Nitol Insurance’s share closed at Tk37.50 on the Dhaka Stock Exchange.

The principal objective of the company is to offer all kinds of insurance other than life insurance. These insurance policies compensate the policyholders for uncertain future events that adversely affect the policyholders’ interests.

The consideration for the above activities is the insurance premium, which constitutes the revenue of the business.

In the January–September period, the net premium income of the company stood at Tk27.06 crore, compared to Tk27.01 crore in the same period of the previous year.

Its re-insurance commission stood at Tk6.70 crore, up from Tk4.48 crore a year ago.

In the January–September period, its net profit after tax decreased by 13% to Tk4.90 crore from Tk5.62 crore compared to the same period in the previous year.

Its earnings per share stood at Tk1.22, down from Tk1.39 compared to a year ago.

In the July–September quarter, its net profit was Tk1.28 crore, and its net premium reached Tk8.58 crore.

During the quarter, its earnings per share were Tk0.32, and its net asset value per share stood at Tk30.16 at the end of September this year.

In 2022, the insurer recommended an 11% cash dividend for its shareholders.

Nitol Insurance has received an AA+ credit rating in the long term, along with a stable outlook based on its audited financials and other relevant information up to 31 December 2022, and unaudited financials up to 30 September 2023.

Credit Rating Information and Services Limited announced the company’s rating according to the Dhaka Stock Exchange.

As of 30 November 2023, sponsors and directors jointly held 35%, institutions held 25.90%, and public investors held 39.10% of shares in the company.

source: tbsnews.net

 

Nitol Insurance stock irregularities ipo 

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