The Bangladesh Securities and Exchange Commission (BSEC) is going to eject 22 companies from the Over the Counter (OTC) market of the capital market.
The companies are Arbee Textiles Ltd, Azadi Printers Ltd, Bangladesh Chemical Industries Ltd, Bangladesh Dyeing & Finishing Ind. Ltd, Bangladesh Luggage Industries Ltd, Bangladesh Zipper Industries Ltd, Chic Textiles Ltd, Eagle Star Textile Mills Ltd, and German Bangla JV Food Ltd. Gulf Foods Ltd, Hill Plantation Limited. Jessore Cement Company Limited, M Hossain Garments Washing & Dyeing Limited, Maq Enterprises Ltd, Phoenix Leather Complex Ltd, The Engineers Limited, Tulip Dairy and Food Products Ltd, Padma Printers and Colors Ltd, Bangladesh Plantation Ltd, Khaza Mosaic Tiles & Stone Industries Ltd, and Jago Corporation Ltd are also included in the list.
Dhaka and Chattogram bourses are working as per the regulator’s directive in this respect. The exits would take place one after another.
Of those, eight companies that are still in operation and 13 which are not in operation have been directed to shift to the SME Platform of the bourses, where new small-cap companies also are applying to get into.
Of the more than six dozen OTC companies, 19 have been directed to shift to the Alternative Trading Board (ATB) of the bourses. General investors will be able to buy and sell shares on the ATB platform. But, they will be able to only sell on the small-cap platform.
The bourses conducted special audits of the financial statements of 21 companies in the OTC market and physical visits. The exchanges investigated all financial and non-financial information of those companies. They checked the existence of land, buildings, and property to assess their value, and prepared their recommendation report for the BSEC.
The DSE launched its OTC with 51 companies and now in the second phase, 29 more companies were sent to the OTC.
Source: The Business Standard
