BSEC passes the buck to DSE

A number of listed companies have gone out of operation for a considerable period of time, thus, depriving the general investors of their due, officials said.
Officials at the Bangladesh Securities and Exchange Commission (BSEC) said since the bourses had listed these companies it was their responsibility to safeguard the investors' interests.
According to an investigation carried out by the Dhaka Stock Exchange (DSE), four listed companies are presently out of operation, and another one is in partial operation.  
The companies that have gone out of operation are -- Modern Dyeing and Screen Printing, Rahima Food Corporation, Northern Jute Manufacturing Company and Meghna Pet Industries. Besides, Bangladesh Autocars is in partially operation.
"DSE listed the companies. So they should look into the investors' interest. They can refer the issue to the securities regulator after failing to take necessary measures on its part," said Mohammad Saifur Rahman, BSEC executive director.
When asked, a senior DSE official said the out-of-operation companies are submitting information to DSE from time to time.
Some of them are giving an insignificant amount of dividend by renting out their factory premises to others.   
"In that sense the companies are not non-compliant. But from the investors' point of view, their performance is much below the expectation," the DSE official said.       
Meanwhile, market price of Modern Dyeing shares rose 11.11 per cent or Tk 8.0 to close at Tk 82 Wednesday.  The company offered 7.0 and 8.0 per cent cash dividend in 2012 and 1013 respectively.
According to the DSE website, Modern Dyeing disbursed 7.0 per cent and 8.0 per cent dividend in 2012 and 2013 respectively.
Rahima Food was placed in "Z" category from "A" category on December 18, 2013, as it had not been in continuous operation for more than six months.
Recently, DSE found that the company is out of operation for four months.
Zakir Hossain, the company secretary, also said it has been out of operation for last four months.
"Our company will start operation next month," he added.
In this connection, a DSE official said a few months back the company also told them that its operation would start from next month.
Production of Northern Jute remains closed since November 1, 2013 for an 'unspecified' reason.
According to DSE, earlier the company was not in operation from July 2011 to November 2012 due to working capital shortage.
The company secretary could not be reached for comment in this regard.
However, Shakawat Hossain, purchase manager of the company, told the FE that it is out of operation for the purpose of overhauling of the plant.
"Our company will start operation soon," he concluded.
According to DSE, Meghna Pet is also out of operation, and a team of the premier bourse found no signboard on the company's premises.
The company's land-phone number, mentioned in its profile, could not be reached despite repeated attempts.
Bangladesh Autocars is partially in operation, as the company is involved only in CNG refilling operation.