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The management of the Dhaka bourse has extended the suspension period of trading of shares of People’s Leasing and Financial Services Limited (PLFSL) for further period of 15 days.
The management of the Dhaka Stock Exchange (DSE) has decided to extend the suspension period of trading of shares of company 15 days more effective from Thursday (September 12), according to official disclosure on Wednesday.
It was the third time the DSE management has extended the suspension period of trading of shares of the company as the company under liquidation process.
On July 14, the management of the bourses suspended share trading of the ailing non-bank financial institution in accordance with Regulation 50 of the DSE (Listing) Regulations, 2015 till getting confirmation from Bangladesh Bank on liquidation of the company.
On July 18, the company informed that they have received a certificate of the lawyer of Bangladesh Bank regarding liquidation of the company. It was also informed that Bangladesh Bank appointed a provisional liquidator to take charge of the assets of the company.
On August 7, the DSE management extended the suspension period of trading of shares of the company for further period of 15 days effective from August 13 as per the aforesaid Regulation.
Later on August 27, the DSE management extended the suspension period of trading of shares of the company for further period of 15 days effective from August 28 as per the aforesaid Regulation.
Recently, the government has directed the central bank to liquidate People’s Leasing and Financial Services (PLFS), a non-bank financial institution, due to deterioration of its financial health in the last several years.
Liquidation of PLFS means closing its operations permanently and the government will take actions to settle liabilities by selling off its assets.
Earlier on June 27, the finance ministry instructed the central bank to shutter the NBFI for its failure to improve its conditions, finance ministry officials said.
The ministry arrived at the decision after going through a detailed central bank report on the NBFI.
The NBFI has failed to repay the depositors’ money despite maturity of the funds, found the Bangladesh Bank report. Default loans and net losses have recently escalated as well.
Each People’s Leasing share closed at Tk 3.0 on July 11, losing 25 per cent within a week following the liquidation news, before trading suspended.
The company failed to pay dividend in the past four years and last paid 10 per cent stock dividend in 2014.
The company’s paid-up capital is Tk 2.85 billion, authorised capital is Tk 5.0 billion and the total number of securities is 285.44 million.
The sponsor-directors own 23.21 per cent stakes in the company, while institutions 9.50 per cent, foreign investors 0.19 per cent and the general public 67.10 per cent as of June 30, 2019, the DSE data shows.