Stocks
BSEC’s appeal adjourned regarding SME’s issues
The Appellate Division upheld the previous order by suspending the appeal made by BSEC on the issue of Tk 20 lakhs, as a result, investors can invest only 20 lakh takas in the case of trading in the DSE-SME (Small & Medium Enterprises) market. At the same time, the High Court has been directed to dispose of the writ in the next two months so that ordinary investors can transact in the SME as well as in Dhaka Stock Exchange.
The Appellate Division gave this order on Monday (January 16). This information is known from the related sources.
Prior, on November 13, a resident of Dilkusha in Dhaka, Advocate Md. Mustafa Kamal of the Supreme Court, A writ (Writ No: 13749) was filed on behalf of Raju Hasan. Business News Portal published the news from Orthosongbad that headlined ‘Falling prices in SMEs, investors fear loss of capital’ and attached as a source in the writ petition.
After filing a writ petition, the High Court asked the capital market regulatory body Bangladesh Securities and Exchange Commission (BSEC) to know the reasons for the investment limit in the SME market. On November 16, the High Court suspended the condition of investing 30 lakh takas in SMEs for three months. BSEC appealed to the High Court against the order of the High Court. However, the Appellate Division stayed the company’s appeal.
Bangladesh Securities and Exchange Commission, the stock market regulatory body, canceled the OTC market of two stock exchanges (DSE and CSE) on September 16 last year. On that day, the commission decided to delist 29 companies and transfer 41 companies to SMEs and ATB (Alternative Trading Board). Later, on September 30 of the same year, trading started on the SME platform of the Dhaka Stock Exchange. On that day, transactions were initially launched on DSE’s SME platform with six companies. Currently, there are 15 companies listed in SME. Out of this, the shares of 13 companies are being traded regularly.
The investment amount for the latest SME platform investment was determined on September 22 this year. In an order signed by BSEC Chairman Professor Shibli Rubayat-Ul-Islam, it is said that to be an eligible investor in the SME transaction, there should be a minimum investment of 30 lakh takas in the stock market. However, as the Appellate Division suspended the BSEC’s appeal, the investors will be able to trade in the SME market with an investment of Tk 20 lakh. And whether ordinary investors can transact in SMEs like the DSE, it will be known only after the order of the High Court.
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.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
