The Bangladesh Securities and Exchange Commission (BSEC) has directed both the bourses to send United Airways (BD) Ltd to the over-the-counter (OTC) market as the volatility of the company's share price might be harmful for the investors.
The airline with grounded aircraft has not been publishing its accounts since 2017. Its share price came down to below Tk2 each against the face value of Tk10 each, while shareholding by its sponsor-directors came down to 2.5%.
The failure to fly its planes pushed the company into such a sorry state that it struggled to clear airport space occupied by its grounded aircraft a few years ago.
The company was listed on the capital market in 2010, and its stock price soared to more than Tk75 per share then.
However, it came down to Tk1.3 per share last year. This week, the company's share price began to soar again in an abnormal pattern and no seller showed interest in selling them.
The securities regulator felt that the fluctuation of the company's share price, in the context of the company's devastated fundamentals, was increasing risk for the investors. So, it came up with the direction to send it to the OTC market.
Delisted securities are set to go to the OTC market, where buyers and sellers can meet each other's trade orders, but the company runs without the listed status.
The OTC is a less active market and hosts poorly performing or non-performing companies, which were expelled from the main market.