• Tuesday, Jan 19, 2021
  • Last Update : 01:28 am

13 listed companies fail to declare dividends in five years

  • Published at 12:15 am August 8th, 2018
dhaka stock market DSE
File photo of Dhaka Stock Exchange Limited Dhaka Tribune

If any of the companies fail to satisfy the conditions of DSE’s review, they may be delisted from the stock exchange

The Dhaka Stock Exchange (DSE) has decided to review the performance of 13 listed companies, as they have failed to declare dividends for the last five years. 

The inspections were announced in a statement posted on the DSE official website on Tuesday.

The companies to be inspected are: ICB Islamic Bank, Meghna Pet Industries, Dulamia Cotton Spinning Mills, Samata Leather Complex, Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk Industries, Kay & Que (Bangladesh), Savar Refractories, Beximco Synthetics, Jute Spinners, and Shinepukur Ceramics Limited. 

If any of the companies fail to satisfy the conditions of DSE’s review, they may be delisted from the stock exchange. Shares of these companies have been trading in the Z category.

 “The performance of the following listed securities will be reviewed by DSE in line with regulation 51(1) (a) of the Dhaka Stock Exchange (Listing) Regulations, 2015. The issuers have failed to declare dividends (cash/stock) for a period of five years from the last date of declaration of dividends or the date of listing with the exchange,” the statement said.

According to DSE listing regulation 51(1)(a), if the issuer fails to declare dividends (cash/ stock) for a period of five years from the last date of declaration of dividends or the date of listing with the exchange, the listed securities may be delisted. 

On July 18, The Dhaka Stock Exchange authorities delisted Rahima Food Corporation Ltd, as well as Modern Dyeing & Screen Printing Ltd, as both companies had been incurring constant losses and had not been in production for over five years.

According to the Listing Regulations 2015, listed securities may be delisted if commercial operation, production, or exploration stops for three consecutive years.

CSE to inspect three companies

The Chittagong Stock Exchange (CSE) is set to inspect both the factories and head offices of three non-productive companies. 

The companies to be inspected are Emerald Oil Industries Limited, C & A Textiles Limited, and Beach Hatchery Limited.

The Bangladesh Securities and Exchange Commission (BSEC) approved CSE’s proposal to inspect the companies on 31 July 31.

If any of the companies fail to satisfy the conditions of CSE’s inspection, they may be delisted from the stock exchange. Recently, the factory of Rahima Food Corporation Ltd was delisted after they failed an inspection by the CSE.

AFC Capital Limited CEO, Mahbub H Mazumder, said: “There has been no merit in the company’s stock for five years. In this case, the DSE board has made the right decision. It is positive for the overall stock market. DSE’s decision will send a message to illegal stock traders.” 


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