DSE board okays Ring Shine listing

Staff Correspondent | Published at 12:00am on November 19, 2019

The board of directors of Dhaka Stock Exchange on Monday approved listing of Ring Shine Textiles on the bourse.

The DSE at a board meeting on Monday made the decision and the management of the bourse will set the debut date for trading of the shares of Ring Shine Textiles.

Earlier, the DSE urged market regulator Bangladesh Securities and Exchange Commission to thoroughly investigate affairs of Ring Shine Textiles or allowed the bourse to do so.

The bourse found that Sung Wey Min, managing director of Ring Shine Textiles, is the chairman of Universe Knitting while around two crore placement shares of Ring Shine were issued to Universe Knitting, but the shares were placed under one-year lock-in period.

The premier bourse wanted to investigate whether there was any existence of Universe Knitting at all.

The BSEC did not pay heed to the DSE appeal and imposed a three-year lock-in on those shares held by Sung Wey.

The BSEC also said that Sung Wey did not violate securities rules as the company sent documents related to Universe Knitting and the matter was settled on disclosure basis.

A section of investors under the banner of Bangladesh Capital Market Investors Association in a letter to authorities on Sunday demanded halting the listing of Ring Shine Textiles and investigating various irregularities of the company.

The investors said that the company had raised huge amount of capital through placement share issuance, and now it raised another Tk 150 crore that would adversely impact the market.

They said the company mentioned in its IPO prospectus that it had paid Tk 9.92 crore as tax but the National Board of Revenue said the company paid only Tk 4.8 crore in tax.