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The Financial Express

Delisting of 14 non-performing cos

DSE to discuss the issue tomorrow


| Updated: July 13, 2019 10:20:13


File Photo (Collected) File Photo (Collected)

The country's premier bourse is yet to take its final decision regarding delisting of 14 non-performing companies as the securities regulator has not yet delivered its instruction.

However, market observers opined delisting is not a solution when a company becomes non-functional as investors have already invested money.

The regulator has many tools in hand to handle non-functional companies including management change, so that investors can get back the money, they invested.

"It would be helpful for general investors. Otherwise, they will lose money," said a market observer.

The Dhaka Stock Exchange (DSE) has reviewed the performances of the companies which violated the listing regulations by recommending no dividend in last five years.

As per section 51 (1) (a) of the DSE Listing Regulations, 2015, any listed securities may be de-listed if the issuer has failed to declare dividend (cash/stock) for a period of five years from the date of declaration of last dividend or the date of listing with the Exchange.

"By reviewing the companies' performances, we have sought instruction from the securities regulator. But we have not yet received instruction from the regulator," said a senior official of the prime bourse.

He said the DSE is unable to take its final decision before getting instruction from the securities regulator.

A DSE director, however, said they would discuss the pending issue of the non-performing companies at a board meeting to be held on July 11.

The prime bouse is also reviewing the performances of 14 companies in line with the section 51 (1) (c) of the listing regulations.

As per this section, a company will be de-listed if the issuer has gone into liquidation either voluntarily or under court order or has stopped its commercial operation/production/exploration for a period of consecutive three years.

The companies which are being reviewed by the DSE as per section 51 (1) (c) are: Jute Spinners, Meghna Condensed Milk Industries, Meghna Pet Industries, ICB Islamic Bank, Dulamia Cotton Spinning Mills, Samata Leather Complex, Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Imam Button Industries, Savar Refractories, Beximco Synthetics, Shinepukur Ceramics, Sonargaon Textiles, Beach Hatchery, ICB Islamic Bank, Dulamia Cotton and United Airways (BD).

Many of these companies have posted losses for the year ending on June 30, 2018.

The Jute Spinners incurred a loss of Tk 60.53 per share, Meghna Condensed Milk Tk 7.89, Meghna Pet Industries Tk 0.39, Dulamia Cotton Tk 4.04, Shyampur Sugar Mills Tk 93.82, Zeal Bangla Sugar Mills Tk 80.82, Imam Button Tk 0.40, Savar Refractories Tk 0.94, Beximco Synthetics Tk 3.12, and Sonargaon Textiles Tk 0.93 per share for the year ended on June 30, 2018.

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