Ten delisted firms join main market Sunday | The Daily Star
12:00 AM, January 17, 2011 / LAST MODIFIED: 12:00 AM, January 17, 2011

Ten delisted firms join main market Sunday

Ten companies that were transferred to over-the-counter (OTC) market for not turning their paper shares electronic will come back to the main trading board on Sunday, as the delisted firms are now compliant.
The Securities and Exchange Commission yesterday took the decision of bringing back the 10 companies' shares to normal transaction system at a meeting presided over commission Chairman Ziaul Haque Khondker.
The stockmarket regulator also instructed the Dhaka and Chittagong stock exchanges to transfer the securities of the companies to the main market for transaction.
The companies are: Bangladesh Services, Samata Leather Complex, Anlima Yarn Dyeing, Alltex Industries, Modern Dyeing and Screen Printing, Zeal Bangla Sugar Mills, Shaympur Sugar Mills, Renwick Jajneswar and Company (Bd), Northern Jute Manufacturing Company, and Orion Infusion.
Earlier on September 30 last year, the stock exchanges delisted 25 listed companies, including these 10, from the main trading board after they failed to convert their paper shares into electronic ones within a stipulated timeframe.
However, these companies were transferred to the OTC market for trade. The OTC market is a separate trading floor for junk companies that do not comply with the securities rules.
Although paper shares take up less than 1 percent of the total market capitalisation on Dhaka Stock Exchange, these scrips create problems, as the system is now electronic.
To bring the highest level of transparency to the trading system, the commission directed that all scrips should be traded in electronic form.
The SEC on June 1 of 2010 in a notification said no paper share will be allowed to trade on the main boards of the stock exchanges from October 1 last year, and the companies with paper shares would have to dematerialise their shares by September 30 the same year.
Through the notification, the stockmarket regulator also directed the bourses to downgrade the companies having paper shares in B-category to Z-category for trade from July 1 last year.
In line with the SEC instruction, the bourses downgraded 26 companies from B-category to Z-category on July 1.
An earlier step halted the trading of paper shares in A-category in January last year.
The electronic trading system has been in place since January 2004, with the introduction of the central depository system (CDS).
Central Depository Bangladesh Ltd operates the CDS and has already gained popularity among investors, as the electronic trading settlement system eliminates the risk of fake or spoiled shares.

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