Home ›› 23 Feb 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has rejected a 5 per cent stock dividend proposed by Dominage Steel Building Systems Limited for the financial year 2020-21.
The board of the steelmaker recommended a 5 per cent cash (other than sponsors or directors) and 5 per cent stock dividend for FY21 and the shareholders approved the plan in an annual general meeting (AGM) on December 31, 2021, said the company in a filing with the Dhaka Stock Exchange on Tuesday.
In line with the securities rules, Dominage Steel submitted an application to the BSEC on January 5, seeking the regulator’s approval to the stock dividend.
But the regulator turned down the application, it said.
The companies which are non-performing and have no good dividend history must take the regulator’s consent for issuing stock dividends as per the securities rules.
Following the stock dividend cancellation by the regulator, the company has been downgraded from the ‘A’ category to ‘B’ with effect from February 23.
A listed company that pays a maximum of 10 per cent dividend for its shareholders will be upgraded to the ‘A’ category. If the company pays below 10 per cent dividend, it is placed in the ‘B’ category, according to the DSE listing.
