The Bangladesh Securities and Exchange Commission on Sunday decided to shift companies back to their applicable category from the ‘Z’ category, which groups low-profile scrips, if the firms ensure distribution of minimum 80 per cent of their approved dividends.
This decision was made at a commission meeting held at the BSEC building at Agargaon in the capital Dhaka.
A press release issued by the stock market regulator said that the stock exchanges would take necessary measures regarding this issue.
The BSEC also decided not to charge any fee for adding ‘PLC’ to the name of registered market intermediary organisations by the commission.
The commission on May 20 issued a directive revising the criteria for companies to be listed in the ‘Z’ category.
According to the directive, the stock exchanges will shift any listed company to the ‘Z’ category if it fails to declare any dividend for two consecutive years from the date of declaration of last dividend or the date of listing with the stock exchange.
The directive said that companies would be shifted to the ‘Z’ category if the issuer failed to hold its annual general meeting within a stipulated timeframe as per relevant laws.
Besides, if the issuer company is not in operation or production continuously for a period of minimum six months, excluding any such period for renovation or BMRE or in the event of force majeure, it will be placed in the ‘Z’ category.
If negative balance of retained earnings exceeds its paid-up capital, the company will also be placed in the junk category.
The Dhaka Stock Exchange demoted a total of 30 companies from ‘A’ and ‘B’ categories to the ‘Z’ category in the past month.
