The Dhaka Stock Exchange on Thursday downgraded 27 listed companies to ‘Z’ category due to non-compliance with securities laws.
The companies are Associated Oxygen, Indo-Bangla Pharmaceuticals, Beach Hatchery, Desh Garments, Advent Pharma, Khulna Power Company, Pacific Denims, Fortune Shoes, Energypac Power Generation, VFS Thread Dyeing, Shepherd Industries, SK Trims & Industries, Lub-rref (Bangladesh), Libra Infusions, Western Marine Shipyard, Phoenix Finance and Investments, Olympic Accessories, National Tubes, National Bank, Miracle Industries, GSP Finance Company (Bangladesh), Far Chemical Industries, Central Pharmaceuticals, Bd Thai Aluminium, Bay Leasing & Investment, Atlas Bangladesh and Anlimayarn Dyeing.
The DSE downgraded the companies after getting a directive from the Bangladesh Securities and Exchange Commission in this regard.
The commission on May 20 issued a directive revising the criteria for companies to be listed in ‘Z’ category.
According to the directive, the stock exchanges will shift any listed company to the ‘Z’ category if it fails to declare any dividend for two consecutive years from the date of declaration of last dividend or the date of listing with the stock exchange.
The directive said that companies would be shifted to the ‘Z’
category if the issuer failed to hold its annual general meeting within a stipulated timeframe as per relevant laws.
Besides, if the issuer company is not in operation or production continuously for a period of minimum six months, excluding any such period for renovation or BMRE or in the event of force majeure, it will be placed in the ‘Z’ category.
If negative balance of retained earnings exceeds its paid-up capital, the company will also be placed in the junk category.
