Eight companies listed on the main board of the Dhaka Stock Exchange (DSE) are set to be downgraded from A and B categories to Z category for failing to pay the dividends declared and approved by the securities regulator for the fiscal year 2022. These companies include Fortune Shoes, Taufika Food, Lovello Ice-cream, Lub-rref (Bangladesh), Associated Oxygen, S. S. Steel, Advent Pharma, Safko Spinning Mills, and Pacific Denims. Along with the downgrade, these firms will also face additional regulatory actions, including penalties and fines.
The Bangladesh Securities and Exchange Commission (BSEC) issued a letter stating that the non-payment of dividends within the specified timeframe is considered “market manipulation.” Additionally, five companies listed on the SME board of the DSE, including Oryza Agro Industries, BD paints, Mamun Agro Products, Krishibid Seed, and Krishibid Feed, face similar punitive actions for failing to pay dividends to shareholders. The BSEC has requested relevant documents to prove dividend distribution and will investigate potential insider trading.