The commission would form a policy regarding volunteer delisting of a company and settle the investors’ interest
Stock market regulator Bangladesh Securities and Exchange Commission (BSEC) has suspended share trading of Beximco Synthetics after the company applied for delisting its shares from both bourses.
BSEC issued letters to both the stock exchanges to suspend share trading of the company from Tuesday.
Regarding trading suspension of the company, BSEC asked bourses to comply with Provision 9(7) of the Securities Ordinance, 1969, where it said that the suspension of a company would be for a period of thirty days.
“The stock exchanges can extend the suspension period by 15 days at once. Suspension would continue to be extended until the commission makes a decision of delisting of the company or any other direction regarding the issue,” BSEC officials said.
They also said the company recently applied to the commission to delist the company and its sponsor-directors would buy shares from the general investors.
Then, BSEC decided to suspend the trading of the company's shares immediately after the company’s application for delisting its shares so that wrongdoers could not manipulate share prices of the company.
The commission would form a policy regarding volunteer delisting of a company and settle the investors’ interest.
Share prices of Beximco Synthetics closed at Tk 8.5 per share on Monday.
Beximco Synthetics continued incurring losses for years and failed to provide dividend for the shareholders. Thus, shares of the company are trading under Z-category also known as junk shares.
The company reported loss per share of Tk3.46, net asset value per share of Tk14.13 for the year ended on June 30, 2019.
The company's sponsors and directors jointly hold 35.67%, institutions 17.93%, foreign investors 0.02%, and general investors 46.38% of shares in the company.
The company was listed on the Dhaka Stock Exchange in 1993. The company belongs to the “Z”category. The company’s paid-up capital is Tk86 crore.