Singer Bangladesh downgraded to category 'Z' over accumulated losses
The premier bourse explained that the negative balance of retained earnings for formerly "A" category Singer Bangladesh, calculated after adjusting their revenue reserves, surpassed their total paid-up capital, triggering the regulatory reclassification to the underperforming 'Z' category
The Dhaka Stock Exchange (DSE) has downgraded multinational electronics manufacturer Singer Bangladesh and IT firm Intech to the 'Z' category from their existing trading categories due to accumulated losses exceeding their paid-up capital.
According to a DSE statement issued this morning (8 July), the downgrades will take effect from today.
The premier bourse explained that the negative balance of retained earnings for formerly "A" category Singer Bangladesh, calculated after adjusting their revenue reserves, surpassed their total paid-up capital, triggering the regulatory reclassification to the underperforming 'Z' category.
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In a separate directive aimed at mitigating market risk, the prime bourse also instructed all stock brokers and merchant bankers to refrain from providing margin loan facilities to investors for purchasing Singer Bangladesh shares.
The 'Z' category generally comprises listed companies that fail to meet specific regulatory or financial criteria.
Consequently, securities trading under this category face significantly stricter trading protocols and margin lending restrictions to protect general investors.
