The Dhaka Stock Exchange (DSE) has decided to review two more listed firms which did not did not pay any dividend in the last five years.
“The performance of the following listed securities will be reviewed by DSE in line with regulation 51(1) (a) of the Dhaka Stock Exchange (Listing) Regulations, 2015,” said a statement posted the DSE website on Wednesday.
The companies are: Sonargaon Textiles Ltd. and Information Services Network Limited.
The DSE statement said the issuers have 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.
The DSE on Tuesday decided to review 13 listed companies’ performance which did not did not pay any dividend in the last five years.
The companies are Meghna Pet Industries, ICB Islamic Bank, Dulamia Cotton Spinning Mills, Samata Leather Complex, Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk Industries, Kay & Que (Bangladesh), Savar Refractories, Beximco Synthetics Jute Spinners and Shinepukur Ceramics.
According to DSE listing regulation 51(1)(a), 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, the listed securities may be de-listed.
After reviewing the companies’ performance, the management of the DSE is likely to take tough action like delisting from the trading board, said a DSE director.
On July 18 last, the DSE delisted Rahima Food and Modern Dying & Screen Printing as the share prices of these companies surged abnormally despite the operations remaining closed for more than three years.
According to the Listing Regulations-2015, listed securities may be delisted if it had stopped commercial operations, productions or explorations for three consecutive years.
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