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The securities regulator BSEC has instructed the bourses to convert physical paper shares in the electronic format of the companies to be shifted to the SME platform and alternative trading board (ATB) from the over-the-counter (OTC) market.
The Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have been ordered to report about the status of the dematerialization process of the shares within seven days, according to a letter sent by Bangladesh Securities and Exchange Commission (BSEC) on Thursday.
The regulator also directed the bourses to report about the shareholding position of the companies. “The decision was taken to make the stock market vibrant and protect investors’ rights,” BSEC Commissioner Shaikh Shamsuddin Ahmed told The Business Post.
“The financial conditions of the companies traded at the OTC market for years are not good. The commission has been making its efforts to revitalise the companies,” he said.
In September last year, the BSEC had abolished the OTC market and decided to transfer potent companies to the ATB and SME platform.
As per the decision, 41 out of 70 companies traded in the OTC market will be shifted to ATB and SME platforms and the remaining 29 companies will be delisted. Of the 41 companies, 18 will be shifted to the ATB and 23 to the SME platform.
Usually, non-compliant companies were traded on the OTC market launched in 2009.
The companies to be shifted to ATB are Bangla Process Industries, Dandy Dyeing, Dynamic Textile Industries, Metalex Corporation, Mita Textiles, Modern Cement, Modern Industries, Mona Food Products, Perfume Chemical Industries, Petro Synthetic Products, Pharmaco International, Quasem Silk Mills, Quasem Textile Mills, Raspit Inc. Bd, Rose Heaven Ball Pen, Saleh Carpet Mills, Sreepur Textile Mills, Therapeutics (Bangladesh), United Air and Jago Corporations Limited.
