22 companies are moving to 'Z' category

22 companies listed on the stock market are classified as 'Z'. The two stock exchanges of the country will include these companies in the Z category from Sunday. In the meantime, the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) has agreed to include these companies in the Z category. This information is known from BSEC sources.

The 22 companies in the Z category are Alltex Industries, Aramit Cement, Aziz Pipes, Delta Spinners, FAS Finance, GBB Power, Intech Limited, International Leasing and Financial Services, Kaya Cosmetics, Khulna Printing and Packaging, National Tea, Premier Leasing and Finance. , Regent Textiles, Renwick Yogeswar, Ringsine Textiles, Safco Spinning, Standard Ceramics, Dhaka Dyeing, Union Capital, Uttara Finance, Yakin Polymers and Zahintex Industries. Among them, Renwick Yogeswar, Ringsine Textiles and Uttara Finance were so far classified as 'A' class companies in the stock market. The remaining 19 companies were of 'B' category as medium quality companies.

Last Thursday, BSEC issued new guidelines to classify certain companies in Z category. It states that companies which do not pay dividend for two consecutive years and do not hold annual general meeting for two years, will be classified as Z. Also, if a company is not in production for six months and retained earnings. A company is more than the paid up capital of that company, it will also be classified as Z.

It is learned that Delta Spinners, Kaya Cosmetics and Uttara Finance among the companies that do not fall under the Z category as low-quality companies have not held regular annual general meetings. Apart from this, GBB Power, Khulna Printing, Regent Textiles and Yakin Polymers have been classified as Z as they have not been in production for more than six months. Remaining 15 companies are moving to Z category due to prolonged losses.