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The 22 companies have been in the “Z” category from two to five years
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday asked 22 listed companies at the Dhaka Stock Exchange (DSE) to submit their business plans, which would help them move out of the “Z” category.
The BSEC sent separate letters to the managing directors and board of directors of the companies. It ordered them to present their plans before the commission once they were ready.
The 22 companies have been in the “Z” category from two to five years, according to sources.
These companies are: Shyampur Sugar, Zeal Bangla, Al-Haj Textile, Aramit Cement, Bangladesh Service, Beach Hatchery, Bangladesh Industrial Finance, Delta Spinners, Dulamia Cotton, Fareast Finance, Generation Next, ICB Islamic Bank, Imam Button, Keya Cosmetics, Padma Islami Life Insurance, Prime Finance, Savar Refractories, Shinepukur Ceramics, Sunlife Insurance, Tallu Spinning, Union Capital and Usmania Glass Sheet Factory Limited.
The regulator also asked the companies to submit detailed proposals along with relevant action plans relating to their business strategies, in a bid to improve their operational and financial performance to help them run profitably so that they can exit the “Z” category.
It also said the commission would initiate all necessary and relevant legal actions to protect the interests of the investors of the companies, and the companies as legal entities.
Meanwhile, as per BSEC direction, 12 listed companies have moved out from the “z category” to their previous “A” and “B” categories in the country’s stock exchanges from Wednesday.
On the other hand, the regulator on Tuesday ordered trading settlements for companies in the junk stocks, or “Z” category, to be T+3 from Wednesday, which was T+9 at the country’s bourses.
According to the new order, the trading settlement period of “Z” category companies to four days (T+3) from ten days (T+9) should bring about positive changes in the capital market.
The securities regulator also made it clear that the shares of a company would be traded under “Z” category if it failed to distribute cash dividends or hold AGM in two years.
A company would be transferred to the “Z” category if its production remained suspended for six months or more.
The BSEC also said that a company having net operating loss or negative cash flow from operations for two consecutive years would also be transferred into the “Z” category.
A listed company would also be transferred into the said category if its negative retained earnings crossed its paid-up capital.
(DT)
