The Bangladesh Securities and Exchange Commission (BSEC) has ordered the Dhaka Stock Exchange (DSE) to investigate the overall situation of four Over-the-Counter (OTC) companies that have returned to the mainboard.
The DSE will investigate the unusual price hike and financials and authenticate the published disclosure of the companies since returning to the mainboard. The DSE has been asked to submit the report to the BSEC within 20 working days, confirmed BSEC Executive Director and Spokesperson Mohammad Rezaul Karim.
The four companies are Paper Processing & Packaging Limited, Monospool Paper Manufacturing Company, Tamijuddin Textile Mills, and Monno Fabrics which have returned to the main board on 13 June.
After their return, the shares prices of these companies skyrocketed though there was no financial upgrading. But when the DSE asked the companies regarding unusual price hikes, they said there is no undisclosed price sensitive information.
The DSE will present the real picture of the business of the companies. It will also verify the veracity of published price-sensitive information as well as investigate the reasons for the price increase in their shares to find out if there is any irregularity, said Rezaul Karim.
According to DSE data, the share price of Paper Processing & Packaging Limited soared by 1126% to Tk215.9 on Sunday from Tk17.6 on 13 June, when it returned to the mainboard.
Tamijuddin Textile Mills' share price rose by 1266% to Tk180.4 on Sunday from Tk13.2 on 13 June.
Monospool Paper Manufacturing Company's share price rose by 307% to Tk180.4 on Sunday from Tk55 on 13 June.
While Monno Fabrics Limited's share price rose by 171% to Tk29.9 on Sunday from Tk11 on 13 June.