Regulator orders bourses to investigate abnormal share price fluctuation

  • Staff Correspondent, bdnews24.com
    Published: 2021-01-13 00:09:39 BdST

bdnews24

The stock market regulator has ordered the two bourses of the country to find out the reasons behind fluctuation of prices of some shares by over 50 percent in the past one month.

The Market Surveillance and Intelligence Department of Bangladesh Securities and Exchange Commission sent letters containing the orders to the managing directors and chief legal officers of Dhaka Stock Exchange and Chattrogram Stock Exchange on Tuesday.

BSEC Deputy Director Mohammad Shamsur Rahman asked the officials of the bourses to report back within 45 days.

The regulator also ordered the bourses to investigate the shares, of which the earnings or EPS increased by 50 percent or more in a year.

The two stock exchanges will have to investigate why turnover of some shares increased by 5 percent or more in six months.

They will also have to find out why the prices of some shares began changing by more than 30 percent from more than 10 days before the publication of price sensitive information.

The bourses will need to find out whether there has been any manipulation in the exchange of these shares.

Buoyed by rise by several times in prices of share prices of some companies, including newly listed ones, the main indices of the two bourses have been increasing for past few days.

On Tuesday, DSEX closed at 23-month high of 5,861 with a nearly 2.5 percent rise.