CSE asked to resume trading, DSE to explain

FE Team | Published: November 14, 2020 21:25:47

FE REPORT
The securities regulator has asked the Chittagong Stock Exchange (CSE) to resume share trading of Rahima Food Corporation.
At the same time, the Bangladesh Securities and Exchange Commission (BSEC) has asked the Dhaka Stock Exchange (DSE) to explain its position on the decision executed by de-listing the company from the main trading board.
The BSEC delivered the instruction on Thursday through separate letters sent to the managing directors of both the bourses.
On July 20, 2018 the CSE suspended the share trading of Rahima Food Corporation as its operation had remained closed for more than three years.
Before suspension of the company's share trading, the Dhaka Stock Exchange (DSE) delisted the company on the same ground following a decision of the exchange's board of directors.
As per the BSEC instruction, the port city bourse will have to inform the regulator about withdrawal of the suspension of the company's share trading within three days on receipt of the letter.
On the other hand, the premier bourse DSE will have to explain its position regarding de-listing of the company from the main board.
"You are directed to explain whether DSE has any comprehensive procedure for voluntary de-listing, defining the responsibilities of the exchanges to protect investors' interest in compliance with necessary regulatory positions before de-listing of listed securities from any trading board of the exchanges," the BSEC's letter reads.
The letter also said the DSE would have to explain whether it regularly disseminated information on its trading monitor as per requirement of listing regulations before de-listing the shares.
"DSE will have to explain whether it initiated any actions against the issuer company and their directors with regards to any deficiencies in any material respect found in listing application as well as non-compliance with prescribed conditions or requirements under sections 9(4) of the Securities and Exchange Ordinance, 1969," the BSEC said in its letter.
The DSE has also been asked to explain whether it initiated any action against issuer companies and their defaulter managing director/chief executive officer, or authorised persons for breach of listing agreement and conditions of undertaking provided at the time of listing of those companies' shares under listing regulations.
Rahima Food Corporation, which was a 'Z' category company, got listed with the stock exchanges in 1997.
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