Bangladesh Association of Publicly Listed Companies (BAPLC) has urged the securities regulator not to change the category of listed companies upon their failure in declaring or disbursing dividend at the year ending.
The BAPLC plea was made on Tuesday through a letter sent to the chairman of the Bangladesh Securities and Exchange Commission (BSEC).
The proposal came in the backdrop of ‘standstill’ situation observed in production, trading, import-export and daily activities of almost all listed companies following the outbreak of COVID-19.
As per the existing rules, a listed company has to declare at least 10 per cent dividend for its shareholders to be traded under ‘A’ category.
A company will be placed in ‘B’ category if it declares less than 10 per cent dividend,
And the company will be downgraded to ‘Z’ category if it does not declare any dividend or do not hold annual general meeting regularly or is not in continuous operations for more than six months.
The BAPLC has proposed not to change the gradation in the companies’ category in default of declaring or disbursing dividend at the year ending.
“Despite not having production or trading, almost all of the publicly listed companies have continued the maintenance of their fixed expenses including salaries, rents etc, amid almost zero revenue,” said the BAPLC letter signed by its president Azam J. Chowdhury.
It has also urged the securities regulator to show the flexibility to the companies in the event of COVID-19 and its subsequent consequences for those applications for IPO (initial public offering) and the rights issues are still in the pipeline.
“We recommend that these issues be settled upon mutual discussions with stakeholders,” the BAPLC said.
The BAPLC has also sought the help of the securities regulator in convincing the central bank not to make the company default over their failure to repay the installment of the bank loan until December 31, 2020.
In its proposal, the association of the issuers has sought necessary support and intervention of the BSEC to facilitate disbursement of the government stimulus package among the listed companies on priority basis.
“We request you to consider our proposals for the survival of the listed companies,” the BAPLC said.
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