The Bangladesh Securities and Exchange Commission (BSEC) has issued an official clarification, dismissing media reports that claimed the regulator had decided to delist companies that have remained inactive or closed for a prolonged period.

In a press release issued on Sunday, the commission said the reports were misleading and based on an inaccurate and out-of-context interpretation of remarks made by BSEC Chairman Masud Khan.

According to the commission, the chairman made the comments during an interaction with journalists at the Capital Market Journalists Forum (CMJF) office on July 9, where he discussed various issues concerning the country’s capital market.

BSEC said several newspapers, online news portals and electronic media outlets incorrectly reported that the commission had decided to delist closed companies from the stock market. The regulator stressed that no such decision had been taken.

The commission explained that the chairman had merely observed that in most global capital markets, companies that remain non-operational for extended periods are not allowed to stay listed indefinitely. In Bangladesh, however, some companies that have remained inactive for years continue to be listed, creating risks for investors, particularly retail shareholders.

BSEC noted that the responsibility for taking necessary action against such companies primarily rests with the respective stock exchanges as frontline regulators. The Dhaka Stock Exchange (DSE) is currently reviewing the issue and working on a transparent and rational framework to address it.

As part of the ongoing review, inactive companies may be given a specified period, such as one year, to resume operations. Companies failing to restart their business within the stipulated timeframe could face action in accordance with existing laws, listing regulations and due process, the commission said.

BSEC also advised investors to exercise greater caution before investing in shares of companies that have remained closed, are non-operational, face going-concern risks, fail to hold annual general meetings regularly, or do not pay dividends, in order to safeguard their investments.