B Mirror Desk : RAK Ceramics (Bangladesh) Limited has undergone a change in its capital market classification, moving from the ‘A’ category to the ‘Z’ category. This update was disclosed by sources from the Dhaka Stock Exchange (DSE).

The transfer to the ‘Z’ category is attributed to the company’s inability to distribute the declared dividend within the required timeframe as mandated by the Bangladesh Securities and Exchange Commission (BSEC). Effective today, May 5, the company will operate under the ‘Z’ category.

Additionally, the DSE has restricted brokerages and merchant banks from extending credit facilities to the company due to this classification change, which takes effect immediately.

It is important to highlight that the BSEC’s directive regarding the ‘Z’ category, issued on May 20, specifies that a company may be categorized as ‘Z’ if it fails to pay dividends to shareholders for two consecutive years, does not conduct regular annual general meetings as required by law, halts production or operations for over six months without valid justification, incurs losses that exceed its paid-up capital, or fails to distribute at least 80 percent of declared dividends within the designated timeframe.