The Dhaka Stock Exchange (DSE) has announced that nine listed companies have been relegated to the ‘Z’ category after failing to hold their Annual General Meetings (AGMs) within the stipulated timeframe. As a consequence, investors will no longer be able to purchase shares of these companies using margin loans while they remain in the Z category.
According to the DSE, until Sunday, 4 January, these companies were trading under the ‘A’ and ‘B’ categories. However, from Monday, 5 January, all nine companies’ shares will officially trade under the Z category, a change reflected on the DSE’s official website.
The companies affected by this move are:
Fu-Wang Food
Beach Hatchery
First Security Islami Bank
Kattali Textile
WiMAX Electrodes
Alif Industries
S. Alam Cold Rolled
Gemini Sea Food
Best Holdings
During the period in which these companies remain in the Z category, all stockbrokers and merchant bankers have been instructed to suspend margin loan facilities on these shares. The DSE emphasised that this measure aligns with the directives issued by the Bangladesh Securities and Exchange Commission (BSEC) on 20 May 2024, which require timely AGM completion to ensure corporate governance compliance.
Financial experts note that companies relegated to the Z category often experience reduced market demand and heightened investment risk, as the suspension of margin loans makes their shares less accessible to leveraged investors.
| Sl. No. | Company Name | Previous Category | New Category | Margin Loan Status |
|---|---|---|---|---|
| 1 | Fu-Wang Food | A / B | Z | Suspended |
| 2 | Beach Hatchery | A / B | Z | Suspended |
| 3 | First Security Islami Bank | A / B | Z | Suspended |
| 4 | Kattali Textile | A / B | Z | Suspended |
| 5 | WiMAX Electrodes | A / B | Z | Suspended |
| 6 | Alif Industries | A / B | Z | Suspended |
| 7 | S. Alam Cold Rolled | A / B | Z | Suspended |
| 8 | Gemini Sea Food | A / B | Z | Suspended |
| 9 | Best Holdings | A / B | Z | Suspended |
The DSE further cautioned that failure to conduct AGMs on schedule could lead to further penalties or extended suspension periods for these companies. Investors are advised to exercise caution when trading shares of companies under the Z category, as liquidity and market activity may be significantly impacted.
This move reflects the exchange’s ongoing commitment to corporate accountability and investor protection, ensuring that all listed companies adhere to regulatory requirements in a timely and transparent manner.