Economic Reporter :
Due to several reasons including failure to hold AGM within the stipulated time and production stoppage for more than 6 months, the Bangladesh Securities and Exchange Commission (BSEC), apex regulatory body of country’s capital market decided to transfer the shares of six more companies to ‘Z’ category.
The shares of these listed companies in the stock market will be transferred to ‘Z’ category from today (Monday). The companies are Prime Textiles, Prime Finance, New Line Clothing, Fareast Islami Life Insurance, AFC Agro Biotech and Active Fine Chemicals Limited, according to Dhaka Stock Exchange (DSE).
Earlier, on 15 February, the BSEC BSEC issued a directive to transfer the shares of 22 companies to ‘Z’ category to restore transparency in the stock market.
According to the directive, if any listed company in the capital market fails to declare dividend for two consecutive years, it will be transferred to Z category. At the same way, if any company fails to hold annual general meeting (AGM) for two consecutive years without any legal reason, the company’s category will be changed to Z category.
The BSEC has also issued strict guidelines for non-manufacturing companies. A company that ceases operations or stops production for 6 consecutive months, it will also be shifted to Z category. as well as, if any company has negative cash flow for two consecutive years and debt is higher than paid-up capital, it will also be placed in Z category, said the directive.
In addition, if any company except bank, insurance and non-banking financial institutions has already been transferred to Z category, the founder or director of the company cannot buy, sell or transfer any shares of the company without the prior approval of the commission, according to the directive.
