General

Insider trading: BSEC probes Dominage Steel for ‘unusual’ stock movement

Markets regulator Bangladesh Securities and Exchange Commission (BSEC) is going all out to curb insider trading in the country’s bourses.

In its latest crackdown, BSEC on Wednesday ordered a probe into an “unusual” trading pattern of the equity shares of Dominage Steel Building Systems, a construction company that started trading on the country’s bourses last month.

BSEC has formed a two-member committee to investigate the reasons behind the sudden hammering of the stock of Dominage Steel, post a huge rally on the exchanges. The panel has been asked to submit its report to the commission within a month, officials said.

“The committee will investigate the reasons behind the suspicious share transaction of the company, and will look into possible insider trading, price manipulation and securities violations if any,” BSEC Spokesperson Mohammad Rezaul Karim told the media.

Dominage Steel made its debut on the Dhaka Stock Exchange and the Chittagong Stock Exchange on December 2 last year at Tk 10. And in two weeks, its shares surged to Tk 43. However, the company’s shares began to plunge when the markets were seeing a rally.

Source: United News of Bangladesh