Shahjibazar’s Surge
BSEC forms another probe committee
The Bangladesh Securities and Exchange Commission on Sunday formed a fresh investigation committee to look into unusual rise in the share prices of Shahjibazar Power Company.
Earlier on August 3, the regulatory body had formed a committee that had investigated unusual rise in the share prices of the company. The BSEC had taken punitive measures against the company based on the findings by the committee.
‘The commission has observed unusual increase in the share price of Shahjibazar at the stock exchanges again,’ a BSEC order issued on Sunday said.
The commission has formed a two-member committee to find out reason for the recent unusual price increase, it said.
BSEC director Rezaul Karim and deputy director Mohammad Shamsur Rahman have been assigned to conduct the investigation and to submit a report within 15 working days, the BSEC order said.
The share price of Shahjibazar increased by 858.80 per cent or Tk 214 from its issue price of Tk 25 since its debut on July 15 this year despite all regulatory measures.
Shahjibazar’s shares rose by 8.70 per cent or Tk 19.20 to Tk 239.70 on Sunday.
‘We had suspended the trading of Shahjibazar’ shares as the company provided fabricated information in its quarterly report. As we have allowed resumption of the trading of the shares of the company after correcting the report, there is no reason for abnormal price hike now,’ BSEC chairman M Khairu Hossain said last week.
He said the BSEC again asked the company if there was any price sensitive information but the company replied in the negative.
‘So we are going to investigate the matter again,’ he said.
In the latest regulatory measure, the BSEC in last week penalised five directors and managing director of Shahjibazar Tk 55 lakh for providing fabricated financial report.
The BSEC on August 21, following a special audit, had revised downward Shahjibazar’s net profit for the period of July 13- March 14 to Tk 16.86 crore and earning per share to Tk 1.48 for the nine months from Tk 28.54 crore and Tk 2.50 respectively.
The trading of the company remained suspended from August 11 to October 21 due to abnormal hike in share prices and the BSEC investigation.
-With New Age input
