• Tuesday, May 11, 2021
  • Last Update : 07:11 pm

12 companies bounce back from 'Z' category in the bourses

  • Published at 01:30 pm September 2nd, 2020
File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

AS per BSEC direction, these companies will return to their previous category from Wednesday

A total of 12 listed companies have moved out from the “Z category” to their respectively previous “A” and “B” category in the country’s stock exchanges, as directed by the Bangladesh Securities and Exchange Commission (BSEC).

AS per BSEC direction, these companies will return to their previous category from Wednesday.

The newly-reinstated companies in “A” category are: AB Bank, Fu Wang Ceramic, Prime Insurance, Renwick Jajneswar, Heidelberg Cement and LibraI Infusion.

Meanwhile, companies reinstated to “B” category are: BD Thai, Appollo Ispat, Safco Spinning, Zaheen Tex, Khan Brothers PP Woven and Salvo Chemical.

Earlier, the stock market regulator on Tuesday ordered trading settlements for the companies in the junk stocks or ‘Z’ category that would be T+3 instead of T+9 at stock exchanges from Wednesday.

According to the new order, the trading settlement period of Z category companies to four days (T+3) from existing ten days (T+9).

The securities regulator also ordered that the shares of a company will be traded under Z category if it fails to distribute cash dividend or hold AGM in two years.

A company will be transferred to the Z category if its production remains closed for six months or more.

The BSEC said that a company having net operating loss or negative cash flow from operations for two consecutive years would also be transferred into the Z category. A listed company will also be transferred into the Z category if its negative retained earnings exceed its paid-up capital.

It also said it would issue a new notification based on which stock exchanges would amend their respective regulations to treat and handle Z category companies.

The new order also states that sponsors and directors holding shares of Z category companies will not be able to sell, transfer, hand over or pledge them.

Companies remaining in the Z category for two years will have to reform their existing board of directors within the next 45 working days.

If they fail to do so, those sponsors and directors will not remain as directors in those companies or in any other listed companies and capital market intermediaries, the BSEC ruled.

In such case, the stock market regulator will appoint special auditors and observers to ensure compliance and good governance. 

After the reformed board is put in place, if they too fail to improve the business within four consecutive years, then the stock exchanges will de-list the companies. 

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail