The Dhaka Stock Exchange on Wednesday downgraded Global Islami Bank PLC to ‘Z’ category from ‘A’ category due to non-compliance with securities laws.
The DSE in its website said that the bank companies did not hold their annual general meetings within the stipulated time frame.
Investors will not get a margin loan facility to purchase the bank’s shares, said the DSE. The Bangladesh Securities and Exchange Commission on May 20, 2024 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 also said that companies would be shifted to the ‘Z’ category if the issuer fails 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 balancing, modernisation, rehabilitation and expansion, 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.
