The stock market-listed Olympic Accessories Limited has not complied with the minimum shareholding requirement. Although the legislation mandates that sponsor-directors possess at least 30 percent of the company’s shares, they now only own 25.81 percent.

The Bangladesh Securities and Exchange Commission (BSEC) has made a firm ruling in this case. The owners of the corporation will no longer be permitted to sell, transfer, or utilize any shares as collateral, per the commission’s 2019 decision. They will also be prohibited from raising any further money at the same time.

BSEC announced that if the company does not fulfill the shareholding requirement within three months, Olympic Accessories will be moved to a different trading platform.

Furthermore, the rule mandating the inclusion of one director on the board from institutions holding at least 2 percent of the company’s shares may be implemented.

Additionally, if the shareholding of the sponsors-directors drops below 25.81 percent, they will face personal liability and disciplinary measures, as stated by the commission.

As reported by the Dhaka Stock Exchange (DSE), Olympic Accessories has incurred losses for five consecutive years starting from the 2019-20 fiscal year. In the 2023 fiscal year, the company experienced its highest loss of Tk 394.4 million, equating to a loss of Tk 2.33 per share.

The last time the company issued a cash dividend was 1 percent in the 2021 fiscal year. Since then, the stock exchange has classified the company under the ‘Z’ category.