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The Bangladesh Securities and Exchange Commission (BSEC) on Sunday dismissed media reports claiming it had decided to delist inactive listed companies, saying the reports were misleading and did not accurately reflect the chairman’s remarks.
In a clarification issued to the media, the regulator said BSEC Chairman had only pointed out that, unlike most global stock markets, Bangladesh still has several companies that have remained listed despite being inactive for a long time, exposing especially small investors to greater risk.
According to the commission, the chairman said the responsibility for taking primary regulatory action against such companies rests with the relevant stock exchange. The Dhaka Stock Exchange (DSE) is currently reviewing the issue and working on a transparent and reasonable framework.
As part of the proposed process, inactive companies may be given up to one year to resume operations. If they fail to do so, further action could be taken in accordance with existing laws, listing regulations and due process.
BSEC also advised investors to exercise greater caution when investing in companies that have remained inactive for long periods, face going-concern risks, fail to hold annual general meetings regularly or do not pay dividends.