Star Business Report
Twenty-six companies on Dhaka Stock Exchange have been downgraded to the Z-category, as they failed to convert their paper shares into electronic ones by June.
In line with directives by the stockmarket regulator, the premier bourse downgraded the companies, which were being traded under B-category, according to a posting on Dhaka Stock Exchange's website.
The Securities and Exchange Commission on May 25 decided that trade on paper shares would not be allowed under B category from July 1, meaning the companies with paper scrips will have to dematerialise the shares within June 30.
The same day, SEC also decided that it would not allow paper shares to trade on the main boards of the stock exchanges from October.
The regulator's move is meant to ensure a smooth and transparent trading system, as paper shares are not compatible with the electronic trading system. It was also aimed to eliminate any fake shares from being traded.
The SEC also banned the trading of paper shares in the A-category in January.
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