The capital market watchdog fined the officials Tk 1 lakh or more each for violating the SEC rules including non-submission of half yearly financial statements, failure to hold annual general meetings (AGMs) and non-submission of audited financial statements, market sources said.

As per the SEC rules, the officials, against whom certificate cases were filed, have to pay fine within a certain period of time and if they fail, warrant of arrest and seizure of property will be ordered after the deadline.

SEC filed certificate cases against three officials of Raspit Incorporate Bangladesh Limited, five of JH Chemical Industry Limited, four of Saleh Carpet Mills Limited, six of Karim Pipe Mills Limited, four of Rupan Oil and Feeds Limited and four of Khaza Mosaic Tiles and Stone Industries Ltd.

The commission filed two certificate cases each against Raspit Incorporate Bangladesh, JH Chemical Industry and Rupan Oil and Feeds, three certificate cases against Saleh Carpet Mills and one certificate case each against Karim Pipe Mills and Khaza Mosaic Tiles and Stone Industries.

Besides, the capital market regulatory body is also preparing to file two more case against JH Chemical and Khaza Mosaic.

The commission also rejected an appeal to waive penalty on Khaza Mosaic and sent the case to law department for penalty realisation.

The SEC in 2005 fined some 58 officials of 12 listed companies. Of the officials, many of them were fined for two or more offences.

However, SEC may withdraw fine against five officials of AB Biscuit Company Limited if the AGM of the company is held within December 31. Besides, the SEC could not take any decision against seven officials of Eagle Box Carton Manufacturing Company Ltd as a case is under trial with the High Court.

Meanwhile, the SEC waived penalty against 19 officials of four listed companies in 2005, including six of Bangladesh Dyeing and Finishing Industry Ltd, four of Pharmaco International Limited, five of Mona Food Industry Limited and four of Dhaka Vegetable Oil Industry Ltd.

Officials said as the companies fulfilled the requirements of the commission, the SEC waived the penalty.

"It is not an objective of SEC to fine an official of a company or impose penalty on a company. The SEC fines or imposes penalty only to force the companies to follow the rules and regulations," said a high official of SEC.