Union Bank, Sea Pearl, Sonali Life downgraded to Z category

Staff Reporter :

The Dhaka Stock Exchange (DSE) has downgraded Union Bank, Sea Pearl Beach Resort, and Sonali Life Insurance to the Z category, commonly referred to as the junk stock category, due to their failure to hold annual general meetings (AGMs).

In an announcement yesterday, the DSE stated that the reclassification complies with a securities regulator directive issued on 20 May 2024. The directive mandates that any issuer failing to conduct its AGM within the stipulated timeframe must be moved to the Z category.

According to DSE listing regulations, companies are required to hold their AGMs within 45 working days after the record date, set during the year-end board meeting.

None of the three firms sought an extension from the Bangladesh Securities and Exchange Commission (BSEC) to hold their AGMs within the required timeframe. Consequently, the DSE decided to downgrade their categories.

Following the downgrade, Union Bank’s share price remained unchanged at Tk4.60, while Sonali Life shares dropped by 9.65 percent to Tk41.20, and Sea Pearl Beach Resort shares plunged 7.76 percent to close at Tk29.70 at the DSE on Wednesday.