Dhaka, Bangladesh (BBN)-The securities regulator has taken a number of decisions to contain abnormal price hike of Shahjibazar Power Company Limited for the sake of investors’ interest, officials said.
As the decision taken by the Bangladesh Securities and Exchange Commission (BSEC), the shares of the SPCL will be traded in the sport market from Wednesday.
The decisions were taken on Tuesday at an ‘urgent’ commission meeting held at the BSEC office.
The securities regulator has also declared the SPCL as non-marginable securities.
As a result, the lenders will not be able to provide margin loan to their clients for purchasing the securities of SPCL from Wednesday.
The debut trading of the SPCL, which went public with an offer price of Tk 25, started on July 15 last and the company’s market price went by 1255.20 per cent to close at Tk 338.80 as on Tuesday.
The BSEC Tuesday also asked the lenders to bring down the single borrower’s exposure limit, which has crossed stipulated limit, within permissible range within next three trading days.
Both the stock exchanges will monitor the exposure limit against the securities of the SPCL.
As per another regulatory decision, every brokerage firm will submit the information regarding the buy and sale of the shares of SPCL to respective stock exchange after the day’s trading session.
And both the stock exchanges will submit the summery information regarding the buy and sale of the shares of SPCL to the securities regulator until further instruction.
Meanwhile, the securities regulator has formed probe body twice to look into the continuous rise in market price of the SPCL. But the SPCL continued its price hike amid regulator’s intensive monitoring.
The BSEC recently slapped fines worth Tk 55 lakh on the SPCL’s five directors and managing director on charge of providing fabricated financial statements.
BBN/BB/ANS-18Nov14-8:00pm (BST)