DSE to delist 4 junk companies

The Dhaka Stock Exchange (DSE) has decided to delist four junk companies and send them to the over-the-counter market for their failure to provide dividends for the last five years.

The four are: Imam Button Industries, Savar Refractories, Meghna Pet Industries and Meghna Condensed Milk Industries.

The premier bourse took the decision in a board meeting on Tuesday and then forwarded it to Bangladesh Securities and Exchange Commission for approval.

In August last year, the DSE agreed to review 15 companies to see whether they have any potential to return to profit as those had been incurring losses for over five years.

“We are taking action against the junk stocks slowly,” said a board member of the DSE seeking anonymity. He said they were poring over 15 more companies.

The board also formed a committee to see whether ACI—an A category company—misled its investors.

An investor has alleged that the business conglomerate has been continually affected for the last 10 years for losses incurred by one of its subsidiaries, the DSE director said.

Earlier in July 2018, the DSE delisted Rahima Food and Modern Dying and Screen Printing for keeping production shut for more than three years.