Dhaka, Bangladesh (BBN)-The securities regulator on Sunday formed a two-member body for the second time to probe into “unusual” price hike of Shahjibazar Power Company Limited (SPCL), officials said.
“The Bangladesh Securities and Exchange Commission (BSEC) observed ‘unusual’ price increase in shares of the SPCL in the stock exchanges. The commission is of the opinion that it is necessary, in the public interest, to cause an inquiry in this regard,” said a BSEC order issued Sunday on the formation of probe body.
As per the order, the probe body comprising BSEC director Mohammad Rezaul Karim and BSEC Deputy Director Mohammad Shamsur Rahman will have to submit their report within 15 working days.
Earlier on August 3, the BSEC formed a probe body to look into the unusual price hike of the SPCL.
The SPCL’s offer price was BDT 25, including a premium of BDT 15 for each ten taka share.
The SPCL’s debut trading was started on July 15 last and the company’s market price went by 858.80 percent or BDT 214.70 to close at BDT 239.70 as on Sunday despite the company’s share trading remained suspended for about seven weeks.
The securities regulator recently slapped fines worth BDT 55 lakh on the SPCL’s five directors and managing director on charge of providing fabricated financial statements.
In this regard, the BSEC said in a statement that the SPCL overstated its earning per share (EPS) to BDT 2.54 in its quarterly report for the period ended by March, 2014.
As a result, the company’s EPS was downgraded to BDT 1.48 following a special audit conducted as per the regulatory instruction.
BBN/BB/AS-10Nov14-1:00pm (BST)