The Dhaka Stock Exchange (DSE) downgraded 27 companies to the Z category for failing to meet dividend requirements over the last two years. Of these, 14 companies failed to pay at least 80% of the dividends they had announced, while the remaining 13 made no payments. According to Bangladesh Securities and Exchange Commission rules, companies are placed in the Z category if they fail to pay dividends or hold annual general meetings for two years, or if their factories remain closed for six months. Following the downgrade, DSE instructed stockbrokers and merchant banks to withhold margin loans for purchasing shares of these companies. As a result, the share prices of the affected companies dropped between 8% and 9.6% yesterday.
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