SEC to probe Islami Bank’s stock manipulations

An investigation has been ordered into the investigation on suspicion of ‘manipulation’ after the share price of Islami Bank more than doubled in a little more than a month and a half after the fall of the Awami League government. When the Awami League government was in power, there were no buyers at the floor price of Tk 32.60. After 34 working days, the share price has exceeded Tk. The price is up 115 percent.

The Bangladesh Securities and Exchange Commission (BSEC) has sought a report from the Dhaka Stock Exchange (DSE) within 30 working days on the price of the bank’s shares.

BSEC spokesman and director Farhana Farooqui told bdnews24.com on Sunday that the chief regulatory officer of the Dhaka Stock Exchange (DSE) has been asked to conduct an investigation.

According to the BSEC letter, the rate at which Islami Bank’s share price increased from August 6 to September 25 is ‘abnormal’ and ‘suspicious.’

An investigation committee was ordered to determine whether there was any ‘insider trading,’ ‘manipulation,’ or another kind of ‘irregularity’ in share trading.

When the Awami League government was in power, there were no buyers at the floor price of Tk 32.60. The picture has been the same for more than two years.

However, after the fall of the Awami League government on August 5, the bank’s shares rose sharply. After 34 working days, the share price exceeded Tk 70, increasing by 37.80 or 115 percent.

This has increased the most in the last six working days. On September 17, the price was Tk 45.80, on Wednesday it stood at Tk 70.40.