Home ›› 05 Aug 2021 ›› Stock
City General Insurance has been placed in 'A' category from existing 'B' category as the company has given 10 per cent cash dividend for the year ended on December 31, 2020.
The change will come into effect from Thursday (August 05), according to a disclosure made on Dhaka Stock Exchange (DSE) website on Tuesday.
According to the securities law, a company which distributes regular dividend 10 per cent or above, holds annual general meetings (AGM) and discloses the financial statements regularly will be placed in ‘A’ category.
On the other hand, a company which distributes less than 10 per cent dividend and meets the other criteria as like as ‘A’ category will be under ‘B’0 category.
Companies those do not pay regular dividends, hold AGMs and do not report financial statements regularly are demoted to ‘Z’ category.
After changing the category of a company, investors are prohibited to provide margin loan facility to buy the company’s share for next 30 days, as per directives of stock market regulator Bangladesh Securities and Exchange Commission (BSEC).
The stock brokers and merchant bankers were requested to abstain from providing loan facilities to purchase security of City General Insurance Co. Ltd. within 1st to 30th trading day after change of categorization, with effect from Thursday.
The company was listed in DSE in 2007. During the last three months, share price of City General Insurance was fluctuated Tk 35 to Tk 41.
In half year of 2021, the company gained Tk 5.51 crore profit which was 221 per cent higher than the same period of 2020. For H1, 2020 the company was gained Tk 1.72 crore profit.
