BSEC extends tenure of 2 inquiry committees

The Bangladesh Securities and Exchange Commission (BSEC) has extended the tenure of two inquiry committees for completion of the inquiry and submission of the inquiry report.

The two committees were formed against SS Steel and Associated Oxygen shares.

The securities regulator has given 20 more working days to the committee formed against SS Steel and 15 working days to the one formed against Associated Oxygen to complete their inquiry and submit reports.

On 29 October 2020, the regulator formed a two-member inquiry committee to look into SS Steel's decision to invest around Tk160 crore to acquire 99% of Saleh Steel Industries' stakes.

On 4 August that year, the company's board of directors decided to make an equity investment in Saleh Steel to subscribe to 99% of its existing equity shares worth Tk24.75 crore.

The company's paid-up capital is Tk281.75 crore.

Sponsors and directors hold a 37.29% stake, institutional investors 17.27% and the general public 45.44% in the company as of 30 November 2020.

On the other hand, on 9 November 2020, the regulator formed a two-member inquiry committee against Associated Oxygen to investigate the unusual price hike of the company's shares.

The committee was supposed to investigate the reasons behind the abnormal increase in the share price and possible allegations of insider trading, price manipulation and securities violations of the company.

The company that was established in 1992 made its debut on the stock exchange in October last year.

In July 2020, the securities regulator approved its IPO prospectus to raise Tk15 crore through the fixed price method.