The Dhaka Stock Exchange (DSE) has decided to review the performance of 13 poor performing listed companies which failed to declare dividend for the last five consecutive years.
In a statement, the country’s premier bourse said that the performance of 13 listed securities will be reviewed by DSE in line with regulation 51(1)(a) of the Dhaka Stock Exchange (Listing) Regulations, 2015.The companies are: Meghna Pet Industries Ltd, ICB Islamic Bank Ltd, Dulamia Cotton Spinning Mills Ltd. Samata Leather Complex Ltd, Shyampur Sugar Mills Ltd, Zeal Bangla Sugar Mills Ltd, Imam Button Industries Ltd, Meghna Condensed Milk Industries Ltd, Kay & Que (Bangladesh) Ltd, Savar Refractories Ltd, Beximco Synthetics Ltd, Jute Spinners Ltd and Shinepukur Ceramics Ltd.
The DSE authorities are going to review the companies as the issuers have failed to declare any dividend, either cash or stock, for a period of five years from the date of declaration of last dividend or the date of listing with the exchange.
According to DSE listing regulation 51(1)(a), if the issuer has failed to declare dividend (cash/ stock) for a period of five years from the date of declaration o f last dividend or the date of listing with the exchange, the listed securities may be de-listed.
DSE sources said that the authorities would assess the current status of the companies, its board, and future prospect and take a decision regarding their status or enlistment with the stock exchange.
On July 18 last, the DSE delisted Rahima Food and Modern Dying & Screen Printing as the share prices of these companies surged abnormally despite the operations remained closed for more than three years.
According to the Listing Regulations-2015, listed securities may get delisted if it had stopped commercial operations, productions, or explorations for three consecutive years.