The Securities and Exchange Commission (SEC) will carry out special audits to evaluate the financial conditions and overall performances of 25 listed companies, which did not hold their annual general meetings (AGMs) for the last two to three years.

The SEC will appoint special audit teams for this purpose. The capital market watchdog will also take actions against companies found to have diverted funds raised through initial public offerings (IPOs).

A SEC meeting on Thursday discussed the audit issue and observed that fund diversion was a serious offence which must be checked in the greater interest of the Investors. SEC Chairman MA Syed presided over the meeting.

The companies which will

come under the audit are: AB Biscuit Co Ltd, Padma Printers and Colour. Sonali Paper and Board Mills. Mac Enterprise Ltd, Dynamic Textile Industries. Mark Bangladesh Shilpa and Engineering Ltd. Tamijud-din Textile. HR Textile. IFIC Bank. UCBL, National Polymar Industries. Tripti Industries. Olympic Industries. Raspit Incorporation, GEM Knitwear. Bangladesh Autocars. Tulip Dairy and Food Products. Met-alex Corporatiop, Kohinoor Chemical. M Hossain Garments, Bangladesh Luggage Industries. Orion Infusion. Bangladesh Dyeing and Finishing Mills. Dhaka Vegetable Oil Industries and Texpick Industries.

The SEC meeting also decided that the defaulting companies would shoulder the fee

for special audits. If a company declines to pay the fee, the Commission will bear the expenses and make arrangements for its recovery from the concerned company at a future stage.

The terms of reference for the audit will be prepared by the SEC and the auditors will be picked from a list approved by the Commission on July 2. 1997.

In another move, the SEC has slapped a penalty of Tk 50.000 on Dynamic Textile Industries Ltd for non-submission of its half-yearly report to the regulatory body.

The SEC action will come into effect today. Dynamic Textile will also face a further penalty of Tk 10,000 for each day default.