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Bourses extend trading suspension period

People's Leasing's woes not to end soon


FE Report | September 12, 2019 00:00:00


Country’s bourses have extended the suspension period of trading of shares of People's Leasing and Financial Services Limited (PLFSL) for another 15 days.

The management of the Dhaka Stock Exchange and the Chittagong Stock Exchange have extended the suspension period 15 days more effective from today (Thursday), according to official disclosures on Wednesday.

It was the third time the bourses extended the suspension period of trading of shares of the company as the company is under liquidation process.

On July 14, the management of the bourses suspended share trading of the ailing non-bank financial institution in accordance with Regulation 50 of the DSE (Listing) Regulations, 2015 till getting confirmation from Bangladesh Bank on liquidation of the company.

On July 18, the company informed that they have received a certificate of the lawyer of Bangladesh Bank regarding liquidation of the company. It was also informed that Bangladesh Bank appointed a provisional liquidator to take charge of the assets of the company.

On August 7, the DSE management extended the suspension period of trading of shares of the company for further period of 15 days effective from August 13 as per the aforesaid Regulation.

Later on August 27, the DSE management extended the suspension period of trading of shares of the company for further period of 15 days effective from August 28 as per the aforesaid Regulation.

Recently, the government has directed the central bank to liquidate People's Leasing and Financial Services (PLFS), a non-bank financial institution, due to deterioration of its financial health in the last several years.

Liquidation of PLFS means closing its operations permanently and the government will take actions to settle liabilities by selling off its assets.

Earlier on June 27, the finance ministry instructed the central bank to shutter the NBFI for its failure to improve its conditions.

The ministry arrived at the decision after going through a detailed central bank report on the NBFI.

The NBFI has failed to repay the depositors' money despite maturity of the funds, found the Bangladesh Bank report. Default loans and net losses have recently escalated as well.

Each People's Leasing share closed at Tk 3.0 on July 11, before trading suspended, losing 25 per cent within a week following the liquidation news.

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