DSE inspecting 14 listed companies

Dhaka Stock Exchange (DSE) is conducting inspections at factories of 14 listed companies to identify whether they have any potential as they have been performing poorly over the years.

The companies are Northern Jute Mills Ltd, National Feed Mills Ltd, Fortune Shoes Ltd, Central Pharmaceuticals Limited, CVO Petrochemical Refinery Ltd, Dulamia Cotton Spinning Mills Limited, Familytex (BD) Limited, Keya Cosmetics Ltd, Khan Brothers PP Woven Bag Industries Limited, Regent Textile Mills Limited, Dacca Dyeing Ltd, Usmania Glass Sheet Factory Limited, Zaheen Spinning Limited and Zahintex Industries Ltd.

A top DSE official confirmed that the DSE had selected 42 companies to conduct inspections as they were incurring losses, failing to hold annual general meetings or had been kept shut for many years.

At present, some of the companies are struggling in terms of performance but prices of their junk stocks are rising continuously. So, the premier bourse decided to ascertain their business potential, he said.

The Bangladesh Securities and Exchange Commission (BSEC) allowed the DSE to inspect 14 companies in the first phase, he said, adding that the bourse had already inspected almost half of them.

Now, it is preparing an inspection report to provide to the stock market regulator, he said.

A top BSEC official said they were analysing whether it was necessary to conduct inspections into the 42 companies. If the BSEC allow the bourse to conduct wide-ranging inspections, it might create a negative impression among companies that are performing well. "So, we are looking into the aspects of conducting inspections," he added.