An investigation committee of the stock market regulator on unusual price hike of Shahjibazar Power Company’s shares has found evidence of price manipulation by a few investors, said BSEC sources. The two-member committee of Bangladesh Securities and Exchange Commission submitted the probe report to the commission on Monday. Sources said that the committee found that at least five investors were engaged in manipulating share prices of the company.
Shahjibazar’s share price rose by 256.80 per cent or Tk 64.20 to Tk 89.2 on August 10 since its debut at Tk 25 in mid-July.
Following the abnormal price hike of Shahjibazar shares, the BSEC on August 3 formed the two-member investigation committee comprising of BSEC deputy director Md Yusuf Bhuiyan and assistant director Mohammad Rakibur Rahman.
The Dhaka and Chittagong stock exchanges on August 11 suspended trading of the company’s shares as its share prices continued
to rise despite BSEC committee formation.
‘The inquiry report has successfully established some investors’ involvement behind the recent abnormal increase in share prices of Shahjibazar,’ said a source.
He, however, could not immediately give the names of investors. ‘The commission will now go through the report and decide what action will be taken,’ he said.
Another probe committee on the unusual price hike of FAR Chemical Industries also submitted its report to the commission on Monday.
The details of the committee report could not be known immediately.
The capital market regulator on August 3 formed the committee.
The shares of FAR Chemical Industries were traded at Tk 43 each on July 15 this year.
Its share price increased to Tk 59.20 on August 3 without having any price sensitive information.
-With New Age input
