BSEC to probe suspected share manipulation of Sonali Aansh
The inquiry committee, formed in the last week of June, will also examine the company’s financial and other related documents for FY24
The Bangladesh Securities and Exchange Commission (BSEC) has formed an inquiry committee to investigate suspected share manipulation of Sonali Aansh Industries – a publicly listed exporter of jute goods – during the 2023-24 fiscal year.
The inquiry committee, formed in the last week of June, will also examine the company's financial and other related documents for FY24.
The committee comprises three members: Mohammad Zahirul Haque, joint director of the BSEC; Rezaun Nur Mehedi, assistant director of BSEC; and Saiful Islam, manager at the Dhaka Stock Exchange (DSE).
The company's share price closed at Tk168.10 on the Dhaka bourse today (3 July).
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The committee will investigate several allegations regarding Sonali Aansh's shares. These include suspected share price manipulation, insider trading, serial trading, and the creation of artificial demand for the company's shares during FY24.
In addition to these issues, the committee will also review the company's financial statements for FY24. If necessary, other financial documents and related records may also be examined as part of the investigation.
A BSEC official, seeking anonymity, stated that incidents of share manipulation involving Sonali Aansh occurred during FY24. The inquiry committee will primarily focus on identifying the nature and extent of these manipulations.
The official added that there are allegations of fake shares being issued in favour of an investor named Motaher Hossain. Although the BSEC had instructed the company to dematerialise those shares, it did not comply. Instead, the company obtained a six-month stay order from the court.
The committee has been instructed to complete its investigation, prepare a report, and submit it to the commission within 60 days.
Company Secretary Md Habibur Rahman Khan declined to comment on the issue when contacted by TBS over the phone.
Despite a significant rise in revenue, Sonali Aansh's net profit fell by 33% to Tk5.68 crore during the July-March period of FY24, down from Tk8.48 crore in the same period of the previous year.
In the first nine months of the fiscal year, the company's revenue surged to Tk110.46 crore, compared to Tk50.41 crore in the same period a year earlier. However, its earnings per share (EPS) dropped sharply to Tk5.23, down from Tk15.64 in the previous year.
