BSEC denies decision to delist dormant firms, calls report misleading

The Bangladesh Securities and Exchange Commission (BSEC) on Sunday dismissed media reports claiming it had decided to delist dormant or non-operational listed companies, describing them as misleading and baseless.
In a press release signed by BSEC spokesperson and Executive Director Abul Kalam, the regulator clarified that no such decision has been taken.
The clarification followed reports based on remarks made by BSEC Chairman Masud Khan during a discussion with journalists at the Capital Market Journalists Forum (CMJF) on 9 July. According to the Commission, portions of his comments were taken out of context, leading to inaccurate reports that the regulator had decided to delist inactive companies.
BSEC said the chairman had merely observed that, in most global capital markets, companies that remain closed or non-operational for prolonged periods are not allowed to stay listed indefinitely. He also noted that several long-inactive companies remain listed in Bangladesh, exposing especially retail investors to potential risks.
The Commission said responsibility for initiating action against such companies primarily rests with the relevant stock exchange as the frontline regulator. The Dhaka Stock Exchange (DSE) is currently reviewing the issue and working on a transparent and practical framework.
Under the proposed approach, long-term non-operational companies could be given a specified period, such as one year, to resume operations. If they fail to do so, further regulatory action may be taken in accordance with existing laws, listing regulations and due process.
BSEC also advised investors to exercise caution before investing in companies that have remained non-operational for extended periods, face going-concern risks, fail to hold Annual General Meetings (AGMs) regularly or do not pay dividends.