2024-05-21 02:03:16
The regulatory physique Bangladesh Securities and Alternate Fee (BSEC) has issued new tips concerning the switch of listed corporations to ‘Z’ class. To any extent further, if any listed firm violates the situations, Dhaka Inventory Alternate (DSE) and Chittagong Inventory Alternate (CSE) can switch that firm to ‘Z’ class. This directive will likely be efficient from July 2.
This info was knowledgeable in an instruction signed by Professor Shibli Rubaiyat-ul-Islam, Chairman of BSEC on Monday (Could 20).
As per the rules, listed corporations will likely be shifted to ‘Z’ class in the event that they fail to declare any dividend for 2 consecutive years from the date of final dividend declaration or from the date of itemizing on the inventory change. Additionally if the corporate fails to carry the Annual Normal Assembly (AGM) inside a specified interval as per regulation the identical will likely be handed.
Nevertheless, in case of non-holding of AGM on account of any writ petition or authorized proceedings pending in courtroom, i.e. topic to sub-judice or pressure majeure, a most interval of two years could also be thought-about for switch to class ‘Z’.
The directive additional states, if the listed firm shouldn’t be in steady manufacturing for at least six months with none such interval for renovation or BMRE (Rebalancing, Modernization, Rehabilitation and Growth), will probably be shifted to ‘Z’ class.
In addition to, if the quantity of collected losses exceeds the paid up capital of the corporate then the corporate could be transferred to ‘Z’ class. Other than this, if an organization fails to pay or distribute at the very least 80 % of the declared or approved dividend inside the prescribed interval, the inventory change can switch it to the ‘Z’ class. And the transaction of Z class shares will likely be settled on T+3 foundation.