The Dhaka Stock Exchange (DSE) is facing criticism from the securities regulator for not changing the category of 23 companies that failed to meet the criteria set by the Bangladesh Securities and Exchange Commission (BSEC). Despite violating a 2020 order, the DSE’s website still displays these organizations under A and B categories, misleading investors who rely on these categories to make investment decisions. The regulator has issued a show-cause letter, stating that such false representation is highly misleading. Five of the companies have already been downgraded to the Z category, and the remaining 18 are in A and B categories. The DSE’s inaction has raised concerns of intentional or unintentional manipulation, as companies that have not paid dividends or held annual general meetings (AGMs) are still categorized inaccurately. The transparency and protection of investors’ interests have been called into question, emphasizing the need for timely updates and clear information to aid investment decisions. The DSE claims it has informed the regulator but faced delays in obtaining approval.
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