The Dhaka Stock Exchange (DSE) authorities have been reviewing the 14 listed companies for a long time due to non-payment of dividends for more than 5 years and non-production for more than 3 years. But even though a long time has passed, no decision has been taken in this regard. Investors are in a dilemma whether to invest in it or not. Investors are awaiting the DSE’s decision to intervene quickly with the intervention of the Bangladesh Securities and Exchange Commission (BSEC).
A senior DSE official told Business Mirror that the companies that have been delisted have weak fundamentals that do not qualify to trade on the stock exchange. Investors are likely to lose capital. So another purpose of re-reviewing these is to get investors out. DSE is working on this. It is hoped that a decision on de-listing will be announced soon.
DSE sources said Meghna Pet Industries, Beach Hatchery Limited and United Airways (BD) Limited are being reviewed under Section 51 (1) (c) of the Listing Regulation of the Dhaka Stock Exchange, 2015.
Besides Meghna Pet Industries, ICB Islami Bank, Dulamia Cotton Spinning, Shampur Sugar Mills, Jilbangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk Industries, Savar Refactories, Beximco Synthetics, Jute Spinners and Shinepukur Ceramics These companies are being re-reviewed under Section 51 (1) of the Dhaka Stock Exchange (Listing) Regulation, 2015.
Article 51 (1) (c) of the Listing Regulation of the Dhaka Stock Exchange, 2015 states that if an issue goes into liquidation voluntarily or under a court order or the commercial production ceases for 3 consecutive years, the issue can be delisted.
In addition, Section 51 (1) of the Dhaka Stock Exchange (Listing) Regulation, 2015 mentions four reasons for de-listing a company. If a company does not pay dividends for 5 years, if a company fails to hold three consecutive Annual General Meetings (AGMs), the company voluntarily or by court terminates or stops production for three years and does not pay the stock exchange listing fee for three years DSE can de-list the company if it wants.
