Stocks
BSEC Faces Complaints Over SME Platform Bias
A group of general investors has raised concerns with the Bangladesh Securities and Exchange Commission (BSEC) and stock exchanges, alleging unfair treatment after investing in the SME platforms. On Tuesday, the investors submitted a list of 13 demands to regulators, seeking to address what they perceive as disparities within the SME market, where 20 companies are currently listed.
One of the primary concerns highlighted by the investors is the disparity in the circuit breaker limits between SME stocks and the main market. They argue that the circuit breakers should be harmonized to ensure a level playing field. Additionally, the investors have called for the removal of the Tk30 lakh minimum investment requirement, advocating for equal access to SME shares for all investors.
The group also proposed stricter penalties for companies that fail to distribute dividends promptly and suggested replacing the leadership of firms that do not adhere to BSEC regulations. They believe that SME companies with paid-up capital equivalent to main market companies, or those that are fully compliant with regulations, should be permitted to trade on the main market. Moreover, firms that have consistently provided a 10% cash dividend for three consecutive years should also qualify for main market trading.
Another significant demand from the investors is that brokerage houses and merchant banks offer loan facilities for SME shares, similar to those available for main market shares. They also recommend that companies transitioning from the Over-The-Counter (OTC) market to the SME platform, and meeting compliance standards, should be eligible for trading on the main market.
Furthermore, the investors propose that SME companies be required to submit financial reports either quarterly or semi-annually. They also suggest allowing companies with lower capital to increase it under specific conditions, while shares created or increased through private placement should not be listed on the SME market.
According to market insiders, the stock regulator had previously relaxed certain rules to attract companies to the SME platforms, even though some were initially deemed unsuitable. Although these companies have started declaring dividends post-listing, some investors claim they have not received the promised payouts.
There are also allegations that some of these companies are submitting inaccurate reports to the stock exchange, falsely indicating that dividends have been paid, which has further eroded investor confidence in the SME market.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
