The Dhaka Stock Exchange (DSE) has suspended Khulna Power Company Limited from trading its shares.
The Exchange made the call after considering the interests of investors at a meeting of its Board of Directors on Wednesday.
According to the official statement of the DSE: “The Board of Directors of DSE, at its meeting held on November 07, 2018, has decided to suspend the trading of shares of Khulna Power Company Limited in accordance with Sub Section 7 of Section 9 of the Securities and Exchange Ordinance, 1969 and Regulation 50 (1) of the DSE (Listing) Regulations, 2015, with immediate effect."
On Sunday, Khulna Power’s corporate entrepreneur Summit Corporation announced the sale of 18,064,235 of its shares. Given that November 22 is slated as the date of distribution of its dividends, selling of shares before the date would mean that the dividends would not be handed out.
Meanwhile, the price of Khulna Power shares fell drastically following the mass sale.
Speaking on the subject, DSE Director Minhaz Mannan Emon said: “The market is in a slump because of the upcoming election, which everyone, including the prime minister, is trying to address. Khulna Power’s move to sell almost 20 million shares at a time like this will definitely bring about a bad effect on the market, one which it cannot handle at the moment. Therefore, we have considered the overall situation and decided to suspend the trading of their shares.”
