The over-the-counter (OTC) markets of the country's two bourses will be closed after one month for ensuring objectives of the investors' investments.
The regulatory body Bangladesh Securities and Exchange Commission (BSEC) issued instructions in this regard on Thursday.
Some of the companies from OTC markets will be shifted to the exchanges' SME Board and Alternative Trading Board (ATB).
On the other hand, remaining companies will be allowed to exit the OTC platform.
Rezaul Karim, executive director and spokesperson of BSEC, confirmed the matter to Bangladesh Post.
He said the shares of the two boards from OTC will have to be converted into demat or electronic shares within the next one month.
Shaikh Shamsuddin Ahmed, a BSEC commissioner, said that BSEC has taken the decision to ensure objectives of the investors' investments.
He said said there is no benefit of the regulatory supervision in the OTC market, as most of the companies exist only in name.
"There is no address of many OTC companies. The exchanges are unable to find out their offices. That's why, we have moved to settle the issue," he added.
Currently, the OTC market has 70 companies of the stock exchanges.
Of the 70 companies, 23 companies will be shifted to the exchanges' SME Board, while 18 will be shifted to ATB.
The remaining 29 companies will be allowed to exit the market.
The 29 companies, which will be asked to exit the OTC market, will have to return money invested by the general shareholders.
The OTC means the facilities provided by an exchange for the purpose of buying or selling of securities, unlisted or delisted from the stock exchange.
The OTC market started its operations in the bourses on October 01, 2009 with 51 companies, which were delisted from the exchanges' main board.
Of the 23 companies, which will be shifted to SME Board and ATB, seven are in operations, and the remaining 16 are out of operations.
The seven companies, which are in operations are: Apex Weaving, Bangladesh Hotels, Bengal Biscuits, Gachihata Aquaculture, Himadri Ltd, Wonderland Toys and Yousuf Flour Mills.
The 16 companies, which will be shifted to SME Board are: Al-Amin Chemical Industries, Alpha Tobacco, Aman Sea Food, Ashraf Textile Mills, Bangladesh Electricity Metre, Bangladesh Leaf Tobacco, Bengal Fine Chemicals, Bionic Sea Food Exports, Dhaka Fisheries, Excelsior Shoes, Lexco, Meghna Shipping Culture, Raspit Data Management, Rangamati Food Products, Therapeutics (Bangladesh) and Jago Corporation.
The 18 companies, which will be shifted to ATB include Bangla Process Industries, Dandy Dyeing, Dynamic Textile Industries, Metalex Corporation, Mita Textile and Modern Cement.
Earlier, some of the OTC companies were brought back to the exchanges' main board.
Four OTC companies resumed trading on the exchanges' main board in June. The companies are - Bangladesh Monospool Paper Manufacturing Company, Paper Processing and Packaging, Tamijuddin Textile Mills and Monno Fabrics.
After resuming trading on the main board, the companies saw abnormal price hike. Of the four companies, the share price of Paper Processing and Packaging rose above 1,200 per cent since the company resumed trading.
