DSE delists two firms

Modern Dyeing & Screen Printing and Rahima Food Corporation have been delisted from the Dhaka Stock Exchange for remaining closed for more than three years.

The decision came at a board meeting of the country's premier bourse yesterday and will come into effect today.

According to the Listing Regulations-2015, any listed security may be delisted if it has stopped commercial operations, productions or explorations for three consecutive years.

Of the duo, Rahima Food Corporation is also listed on the Chittagong Stock Exchange (CSE).

"As it is still listed on the CSE, trading through the CSE will continue," said M Shaifur Rahman Mazumdar, managing director of the port city bourse.

He said the CSE was

investigating some companies, including Rahima Food Corporation, and if the probe team gives the go-ahead then these

companies would be delisted.

KAM Majedur Rahman, managing director of the DSE, said if the delisted companies apply for trading in the over-the-counter market, the premier bourse will look into it.

Market insiders said though some people would lose money because of the delisting of the two companies, the decision would turn out to be good for the capital market as people would be cautious about junk shares.

Modern Dyeing & Screen Printing was listed on the DSE in 1988. It has Tk 1.36 crore as paid-up capital. Its share price soared 8.25 percent to Tk 326.90 yesterday.

Rahima Food Corporation was listed on the bourse in 1997. It has Tk 20 crore as paid-up capital and its share price declined 2.3 percent to Tk 174.30 on the day.