The Bangladesh Securities and Exchange Commission (BSEC) has directed the Dhaka Stock Exchange (DSE) to investigate the abnormal rise in the share price and trading volume of Islami Bank Bangladesh PLC. The regulatory body issued this instruction following a noticeable and suspicious surge in the bank’s stock price.
On Wednesday, September 25, BSEC sent a letter to DSE’s Chief Regulatory Officer, instructing an immediate investigation into the matter.
The letter highlighted that the recent spike in Islami Bank’s share price and trading activity is concerning and could indicate market manipulation or other irregularities. BSEC has asked DSE to examine potential reasons behind this unusual increase, such as market manipulation, insider trading, or other forms of market abuse, and submit a detailed investigation report to BSEC’s Surveillance Department within 30 working days.
The letter also stated that if any suspicious transactions during the investigation are found to have violated the Securities and Exchange Commission (Stock Dealer, Stock Broker, and Authorized Representative) Regulations 2000—particularly codes of conduct 6, 8, and rule 11—the relevant AR/Compliance Officer/CEO should be immediately informed.
Market analysis shows that between August 6 and September 25, the share price of the listed company rose from BDT 32.60 to BDT 70.40, marking a jump of BDT 37.80 or 115.95%. This increase is seen as abnormal and possibly the result of manipulation, according to the commission.
