Stocks
BSEC Issues Stern Directives on ‘Z’ Category Reclassification
In a bid to enhance cleanliness in the stock market, regulatory body Bangladesh Securities and Exchange Commission (BSEC) has issued stringent directives to companies, urging them to shift or reclassify into the ‘Z’ category if they fail to declare dividends for consecutive two years. The new guidelines, signed by BSEC Chairman Prof. Shibli Rubayat-Ul-Islam on Thursday, February 15, extend the criteria for reclassification to companies unable to hold annual general meetings or pay annual fees for two consecutive years. The move also covers companies inactive for six months or those keeping their operations suspended.
Furthermore, the BSEC has extended its directives to non-listed companies, stating that any entity remaining inactive in its operations for six months or ceasing production will also be reclassified into the ‘Z’ category. The new regulations also apply to companies with a negative cash flow for two consecutive years or having higher debt than paid-up capital.
According to the issued statement, if any company fails to comply with security laws, regulations, notices, orders, or directives, it may be reclassified into the ‘Z’ category after approval from the commission.
According to regulations, companies listed on the stock exchange, excluding banks, insurance, and non-banking financial institutions, can now provide investors with interim dividends (other than stock/bonus shares). Under the new rules, the categorization of companies will be determined by considering the interim dividends.
Additionally, if any company, apart from banks, insurance, and non-banking financial institutions, has already been reclassified into the ‘Z’ category, it will not be able to engage in share transactions or undergo reclassification without prior approval from the commission.
This latest directive will render ineffective the provisions of the Dhaka Stock Exchange (Listing Regulations) 2013 and Chittagong Stock Exchange (Listing Regulations) 2013, Article 5(2). The new guidelines will take effect today, superseding the aforementioned regulations.
Dhaka Stock Market DSE, Bourse on the last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
