The notification barred any listed company from providing loans to its associate companies, which are usually owned by its sponsor-directors. Those who have lent to their associated concerns and are charging some form of interest will be dealt with leniently. Contacted, Ahmed Rajeeb Samdani, managing director of Golden Harvest, acknowledged receiving the letter from the BSEC. Square Pharma’s board and shareholders had given their nod to the transaction at its annual general meeting. “Providing loans to associated companies may serve the interest of the companies’ connected people while damaging the interests of the general investors.

Source: Dhaka Tribune November 28, 2020 18:11 UTC