The institutional and individual investors of the company alleged they are not getting the dividends despite repeated instructions from the capital market regulator to the company for paying the dividends.

The Securities and Exchange Commission (SEC), now examining the investors' complaints, will take 'appropriate measures' against the company as per rules, said a senior official of the Commission yesterday.

However, the company in its compliance report submitted to SEC on Saturday stated that it had made payment of Tk 88 lakh to its preferred shareholders till August 20. The company declared dividend amounting to Tk 1.15 crore.

Bangladesh Shilpa Rin Sangstha (BSRS), an institutional investor, last week complained that Bangladesh Krishi Bank had dishonoured the dividend warrant issued by Beach Hatchery Ltd. BSRS invested over Tk 3.63 lakh in the company.

The SEC has received formal complaints from another institutional investor, Investment Corporation of Bangladesh (ICB) of not getting the dividends against the preference shares of the company, sources said.

Individual investors also lodged similar complaints before the capital market regulators, another SEC high official said.

Although the SEC directed the Beach Hatchery Ltd to submit a compliance report within July 30, the company failed to complete dividend distribution not only in the stipulated time, even within the extended period.

Beach Hatchery Ltd, a company based in Satkhira, introduced preferential shares in Bangladesh and raised Tk 8 crore promising 15 per cent guaranteed cumulative dividend to subscribers of preferred shares.

The company had raised Tk 5 crore through private placement and another Tk 3 crore from the market through IPO (initial public offering).

On behalf of the company, Bangladesh Krishi Bank (BKB) guaranteed the 15 per cent dividend to make the investors free of risk.

The company raised the funds from the stock market mainly to finance expansion of land development, purchase of hatchery equipment and setting up of a nursery at Satkhira.

According to the SEC officials, the company had announced the book closure on April 6, 2003 and as per the securities law, the company was required to have completed distribution of all dividend warrants by June 6, 2003.