DSE move to update listing regulations

FE Team | Published: July 01, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Dhaka Stock Exchange (DSE) has taken a move to update its listing regulations. The last revision in the regulations was made in 1998.
The bourse has already made a primary draft on the changes now under review, sources said.
The DSE is likely to define specifically a company's eligibility for listing on the stock exchanges as the present regulations lack a clear definition.
There is also no clear instruction for de-listing of a company in the existing listing regulations.
If the changes are made, it will be possible to ascertain in which case a company will be identified for being de-listed.
Following the commencement of Central Depository Bangladesh Limited (CDBL), some operational changes are made in the bourses, but the changes are yet to be covered by the DSE Listing Regulations.
The DSE plans inclusion of the criteria of the Securities and Exchange Commission (SEC) corporate governance guidelines, issued early 2006 by the capital market watchdog.
The premier bourse also plans to set criteria for listing new venture or greenfield companies.
"We need another two or three meetings with the representatives of the listed companies to complete the review. And we are hopeful about submitting the final draft on the changes to the SEC soon for its approval," said a DSE source.
He said the DSE took the initiative to upgrade the listing regulations as all the above factors are already in practice in the bourses of the neighbouring countries.
With the updates of the listing regulations, it will ease the listing and de-listing process, besides encouraging the companies, especially the new ventures, to get listed on the stock exchanges, the DSE CEO said.
"It will also help the market develop further and protect the investors' interests as well," he added.
Meanwhile, the DSE has so far de-listed 36 companies since 1994.
"Most of them faced the music from the bourse as they failed to run the operations of the companies depriving the shareholders of their minimum right," one DSE source told the FE Tuesday.
A few of them voluntarily opted for de-listing.
"Shareholders' investments were refunded in most of the cases as the companies intimated us ahead of issuance of final directives on the de-listing in the past," one DSE director said.
The company last de-listed is Rabeya Flour Mills.
Trading on shares of the company has remained suspended on the DSE since 2003.
Apart from Rabeya Flour, the companies which have been de-listed from the DSE since 1994 are Chand Textile, Chand Spinning, Panther Steel, Anowara Jute, Specialised Jute, Paper Converting and Packaging, Delta Jute, Gawsia Jute, Howlader PVC, Aroma Tea, Frogless Export, Swan Textile, Progressive Plastic, Milon Tanneries, New Dhaka Refractories, Shamsher Jute, Ahad Jute, Islam Jute, Highspeed Ship, Mutual Jute Spinners, Bengal Steel, Karim Pipe, AB Biscuit, Dhaka Vegetable, Rupon Oil, Meghna Vegetable, National Oxygen, STM, GEM Knitwear, JH Chemicals, Mark Bd Shilpa, Paragon Leather, Texpick Industries and Eagle Box.
Of them 15 were delisted in 2004, 14 in 1996 and two each in 1994 and 2001.
Three Beximco textile companies-Beximco Textiles, Beximco Denims and Beximco Knitting- were delisted from October 1, 2006 as the companies merged with Padma Textile, later renamed as Bextex Ltd.
Earlier, another company -- Beximco Infusion -- was de-listed on July 11 of 2005 as the company was merged with Beximco Pharmaceuticals Ltd.
Currently there are 259 listed companies in the DSE.