Committee assigned to probe market operators' role in share price-hike

The securities regulator has formed a two-member committee on Wednesday to probe into the role of market operators behind the unusual price hike of shares of the newly-listed companies, observed in their initial trading sessions.

The Bangladesh Securities and Exchange Commission (BSEC) formed the body, identifying some orders placed for the shares of Mir Akhter Hossain Ltd (MAH).

The company made its debut trading on Tuesday, and on the day its share price jumped 50 per cent. The share trading even halted at 50 per cent upper circuit as soon as the trading opened.

"As part of the move, the securities regulator will conduct a special inspection to probe into IDLC Securities' role behind the price hike of the shares of MAH," said Mohammad Rezaul Karim, the BSEC spokesperson.

The securities regulator issued an order to this effect on Wednesday. The BSEC observed that some brokerage firms in different times placed orders at high prices before starting the trading session to halt the companies' trading, Mr. Karim also said.

"The share price of MAH could rise up to 50 per cent on Wednesday. But the company's share price rose 24 per cent, as the regulator identified the role of some market operators before closure of the trading session."

The BSEC spokesperson noted that many eligible investors played a role to halt share trading of the newly-listed companies by placing artificial buy orders at high prices. "The securities regulator has started doing its job to contain abnormal price hike of the newly-listed companies, based on inside information."

Mr Karim further said two BO (beneficiary owner's) accounts were already frozen, as a significant number of buy orders had been placed through those accounts.

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