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DSE to review performance of two more listed companies

  • Published at 12:26 am August 9th, 2018
DSE
DSE will review two companies for failing to declare dividends for the past five years Mehedi Hasan/Dhaka Tribune

The companies are Sonargaon Textiles Ltd and Information Services Network Ltd, according to a statement posted on Wednesday on the DSE website.

The Dhaka Stock Exchange (DSE) has decided to review two more listed companies that have failed to declare dividends in the last five years.

The companies are Sonargaon Textiles Ltd and Information Services Network Ltd, according to a statement posted on Wednesday on the DSE website.

“The issuers (companies) have failed to declare dividends (cash or stock) for a period of five years from the last date of declaration of dividend or the date of listing with the exchange,” the statement said. 

During the review, the companies will be asked to reveal their current and future business plans, and why they should not be delisted from the DSE. 

Based on the outcome of the review, the DSE will decide whether they should be delisted. 

The DSE statement said the performance of Sonargaon Textiles and the Information Services Network would be reviewed in line with Section 51(1) (a) of the Dhaka Stock Exchange (Listing) Regulations, 2015. 

Section 51(1)(a) says if a company fails to declare dividends (cash/stock) for a period  of  five  years from the date of last dividend declaration, or the date of listing with the DSE, it faces the risk of getting delisted.

Earlier on Tuesday, the DSE decided to review the performance of 13 other listed companies for the same reason. 

Those companies are: ICB Islamic Bank Ltd, 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 Ltd. 

On July 18, the DSE delisted two companies – Rahima Food Corporation Ltd and Modern Dyeing and Screen Printing Ltd – as the companies had been incurring constant losses and had not been in production for over five years.

According to the DSE (Listing) Regulations, 2015, listed securities may get delisted if they stop commercial operations, production, or exploration for three consecutive years.