Staff Reporter: The regulator Bangladesh Securities and Exchange Commission (BSEC) has directed both the stock exchanges to look into the reasons behind the rise in the price of shares in the country’s stock market by more than 50 per cent in a month.
The Market Surveillance and Intelligence Department of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday (January 12th) issued the letter to the managing directors and chief legal officers of both the country’s exchanges.
The letter, signed by BSEC Deputy Director Mohammad Shamsur Rahman, outlines four areas that the two stock exchanges need to investigate if they happen.
Listed companies, meanwhile, whose earnings per share or price have increased or decreased by more than 50 per cent in the previous 30 working days or less and over the same period last year, need to be investigated.
The BSEC also asked to find out the reasons behind the increase in the share turnover of the companies in one month which is 5 times or more than the average turnover of the previous 6 months.
The agency also instructed two stock exchanges to investigate companies whose share prices and transactions rose or fell more than 30 percent 10 days before the release of their price-sensitive information.
The BSEC letter further said that it was necessary to find out whether there was any ‘manipulation’ in these four cases.
On the other hand, the stock market index has been rising for some time. The share price of some companies has increased several times. This includes shares of newly listed companies.
The stock market in Dhaka also saw a big jump in the price index and the volume of transactions on Tuesday.
It is to be noted that the two stock exchange authorities have been directed to send the investigation report to BSEC within 45 days.
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