All the companies, belong to Z category
The Chittagong Stock Exchange (CSE) will conduct an on-site inspection on four non-performing listed companies before delisting them from the bourse for non-compliance records of the securities laws.
The inspection team of the port city bourse will inspect both the factories and head offices of the companies in question, to know their actual state-of-affairs, a top CSE official told Dhaka Tribune on Wednesday.
The companies, belonging to Z category, are Samata Leather Complex, Information Service Network Limited (ISNL), Imam Button Industries and Beximco Synthetics Limited.
CSE’s move came after the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved its proposal on the inspection.
CSE Chief Regulatory Officer (CRO) sought the approval from the securities regulator in this regard on August 2.
“If any of the companies fail to satisfy the conditions of CSE’s inspection, they may be delisted from the stock exchange,” another CSE official said.
Recently, Rahima Food Corporation Ltd and Modern Dyeing and Screen Printing Ltd were delisted from the stock exchange, as the firms failed to comply with the securities laws.
According to CSE listing regulation 54(1), 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.