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Three companies to be suspended from stock exchanges

  • Published at 12:08 am August 17th, 2018
bangladesh-securities-and-exchange-commission-bsec-syed-zakir-hossain-1531594807822.jpg
The Bangladesh Securities and Exchange Commission office in Dhaka Syed Zakir Hossain/Dhaka Tribune

The three companies are Monno Jute Stafflers Ltd, BD Auto Cars and Legacy Footwear. The companies have been suspended for 30 sessions, BSEC Executive Director and spokesperson Md Saifur Rahman told the Dhaka Tribune

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday ordered the stock exchanges of the country to suspend the trading of three companies.

The three companies are Monno Jute Stafflers Ltd, BD Auto Cars and Legacy Footwear. The companies have been suspended for 30 sessions, BSEC Executive Director and spokesperson Md Saifur Rahman told the Dhaka Tribune

The commission decided on the punitive measures after the watchdog detected anomalies in the trading of the companies’ shares.

Furthermore, BSEC also decided that five other companies will be traded on the spot market for an unlimited period, due to irrational price hikes. 

The five companies which were sent to the spot market are Monno Ceramics, Key&Que, Aziz Pipes, Style Craft, and Dragon Sweater.

In addition, the stock market regulator decided to form an inquiry committee to investigate abnormal price hikes of BD Autocars, and Legacy Footwear shares. 

The committee, headed by BSEC Deputy Director Shamsur Rahman, was asked to submit its report within 30 working days.

The committee will investigate the reasons behind the unusual increase in the price of shares of these companies, and will look into possible insider trading, price manipulation, and securities violations, a senior BSEC official said.

Earlier, on July 18, the Dhaka Stock Exchange (DSE) delisted Rahima Food Limited, and Modern Dyeing and Screen Printing Limited, as the share prices of the companies continued to surge abnormally despite the companies having been out of operation for a long period.

On August 6, the bourse also decided to take punitive measures against 15 more non-compliant and non-performing companies.

According to the DSE website, performance of the 15 listed securities will be reviewed by the DSE in line with listing regulations, as the issuers have failed to declare dividends for a period of five years from the date of declaration of last dividend or the date of listing with the exchange.

The companies are Meghna Pet Industries, ICB Islamic Bank, 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, Sonargaon Textiles and Information Services Network Limited.