Summary:

Bangladesh Securities and Exchange Commission has started delisting and transferring the listed stock in the Stock Market and has been sending the over-the-counter companies to small capital platforms and alternative trading boards.

Content:

Bangladesh Securities and Exchange Commission issued a notification in 16^th September in a Committee meeting that it would transfer or delist stocks from the over-the-counter market from the 19^th September.

An over-the-counter (OTC) market is a decentralized market in which market participants trade stocks, commodities, currencies, or other instruments directly between two parties and without a central exchange or broker. Because of this, liquidity in the OTC market may come at a premium.

In a controversial number, some 60-70 companies were listed in the board. Of them, 41 were lucky to be transferred to either small or medium enterprise board or Alternative Trading Board.  Other remaining companies are delisted as confirmed by BSEC in a press release.

The logic behind delisting these companies is, most of them are either non-activated or traceless so these cannot provide anything to the shareholders as stipulated by BSEC.

Seven companies, including Apex Weaving and Finishing Mills, Bengal Biscuits Limited, Bangladesh Hotels Limited, Gachi Hata Aquaculture Farms Limited, Himadri, Wonderland Toys and Yousuf Flour Mills, are in operation and have been sent to the small capital platform.

Some other companies which are not in operation are to be shifted to the small capital platform if they can comply with some conditions, including submitting a strategic plan regarding fundraising. There are about sixteen other companies like this. The other compliance matters are commencement of production activities and execution of necessary share transfer and compliance with the BSEC ( Qualified Investor Offer by Small Capital Companies) Rules 2018.

The sixteen companies are Al-Amin Chemical Industries, Aman Sea Food Industries, Alpha Tobacco Manufacturing, Ashraf Textile Mills, Bangladesh Leaf Tobacco Co, Bangladesh Electricity Meter Co, Bengal Fine Ceramics, Dhaka Fisheries, Bionic Seafood Exports, Lexco Limited, Meghna Shrimp Culture, Rangamati Food Products, Therapeutics(Bangladesh) Ltd and Jago Corporation, Excelsior Shoes.  

In 2009, the BSEC launched the OTC market with companies delisted from the main trading boards of the Dhaka Stock Exchange and the Chittagong Stock Exchange. Both the stock exchanges will be providing trading facilities of securities listed on the small capital platform and ATB of the stock exchanges within one month.

The aforesaid 29 companies which are delisted from the market are: Arbee Textiles, Azadi Printers, Bangladesh Plantation, Bangladesh Chemical Industries, Bangladesh Dyeing & Finishing Ind, JH Chemical Industries, , Bangladesh Zipper Industries, Chic Tex Limited, Eagle Star Textile Mills, German Bangla JV Food, Gulf Foods, Hill Plantation, Padma Printers & Color , Jessore Cement Com, M Hossain Garments Washing & Dying, Maq Enterprises, Maq Paper Industries, Phoenix Leather Complex, The Engineers, Tulip Dairy & Food Products, , , Khaza Mosaic Tiles and Stones Industries, National Oxygen, Paragon Leather & Footwear Ind, GEM Knitwear Fabrics, GMG Industrial Corporation, , Meghna Vegetable Oil Ind, Mark Bangladesh Shilpa & Engineering and Rupon Oil & Feeds Limited, Bangladesh Luggage Industries.

Source: New Age BD