Shahjibazar’s share price soars after formation of probe committee
The committees formed by the Bangladesh Securities and Exchange Commission to probe unusual price hike of shares of different companies in last one year have little effect as no action was taken against any manipulator in most of the cases.
The BSEC in last one year investigated unusual price hike of at least 17 companies, but only two of the cases have been resolved so far by imposing penalties on the manipulators.
The companies whose abnormal share price rise was investigated by the regulator in last one year are Legacy Footwear, Desh Garments, BD Auto Car, Rahima Food, Information Service, Monno Staffler, Modern Dyeing, Anwer Galvanising, JMI Syringes and Medical Device, Hakkani Pulp, Intech Online, Alhaj Textiles, CVO Petrochemicals, Mithun Knitting, Tallu Spinning, Wata Chemicals and Bangas.
According to the DSE web site, the share price of Legacy Footwear rose to Tk 47 from Tk 19, that of Desh Garments rose to Tk 97 from Tk 46 and that of BD Auto Car rose to Tk 52 from Tk 26 in the 15 trading sessions in September last year.
The price of Wata Chemicals share rose to Tk 487.10 on June 3 which was traded at Tk 59 a day before.
After investigations, the commission has so far took enforcement actions against the individual and entities involved in the share price manipulation of CVO Petrochemicals and JMI Syringes and Medical Devices.
But no actions were taken against the manipulators who were involved in share price manipulation of other 15 companies, BSEC sources said.
Forming inquiry committee has become a formality of the capital market regulator as a very few enforcement actions were taken by the commission on the basis of the investigation reports, market operators said.
Most of the manipulation cases remain unsettled for long that encourages the perpetrators to do the same again, they said.
-With New Age input
