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 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.
