The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into the share trading activities of three listed companies over allegations of possible market manipulation stemming from unusual price movements and trading patterns.

The companies under scrutiny are state-owned Shyampur Sugar Mills Ltd., Bangladesh National Insurance Company Ltd. (BNICL) and Sonargaon Textiles Ltd.

In three separate letters sent by its Surveillance Department to the Dhaka Stock Exchange (DSE), the securities regulator instructed the bourse to submit detailed investigation reports within 30 working days.

According to BSEC, the stocks of the three companies have witnessed abnormal price surges since last month. The commission’s monitoring systems detected unusual trading behaviour and significant price volatility, prompting concerns over potential manipulation, coordinated or artificial trading, and possible violations of securities laws.

The DSE has been asked to examine whether the transactions involved coordinated or fictitious trading, insider trading through the use of undisclosed price-sensitive information, compliance with margin loan regulations and commission directives, and the role of stock brokers, dealers and their authorised representatives (ARs). The investigation will also cover any other irregularities or breaches of securities regulations.

In the case of Shyampur Sugar Mills, the commission specifically directed the DSE to review the roles of Baraka Securities Ltd. and Smart Shares and Securities Ltd., including whether the brokerage firms failed to prevent suspicious transactions or assisted in them in any way. BSEC has also instructed brokers and dealers to raise awareness among their chief executive officers, compliance officers and authorised representatives regarding suspicious trading activities.

The regulator said such transactions could constitute violations of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorised Representative) Rules, 2000.

Sonargaon Textiles’ Share Price Doubles Despite Losses

DSE data show that the share price of loss-making Sonargaon Textiles doubled within a month, rising from Tk 40.10 on May 17 to Tk 84 on June 16.

The company informed the DSE on June 2 that it had no undisclosed price-sensitive information behind the recent price increase and trading activity.

Financially, the company remains weak. It incurred a loss of Tk 5 million during the first nine months of FY2025-26, with a loss per share of Tk 0.19. It also reported a loss of Tk 21.3 million in FY2024-25 and did not declare any dividend for the year.

Suspended Shyampur Sugar Mills Records Unusual Surge

The share price of long-shuttered, Z-category Shyampur Sugar Mills climbed from Tk 139.20 on May 17 to Tk 238.90 on June 11, prompting the DSE to temporarily suspend trading in the stock due to abnormal price movements. The share later declined to Tk 196.60 at Tuesday’s close.

The company told the DSE on June 10 that there was no undisclosed price-sensitive information behind the sharp rise.

Shyampur Sugar Mills continued to incur losses, reporting a loss per share of Tk 12.47 in the third quarter (January-March) of FY2025-26.

National Insurance Shares Also Under Scanner

Shares of Bangladesh National Insurance Company Ltd. rose from Tk 82.70 on May 17 to Tk 116.10 on June 9 before easing to Tk 108.30 at Monday’s close.

Although the company’s financial performance improved, with first-quarter earnings per share rising to Tk 1.61 from Tk 1.06 a year earlier and net operating cash flow per share increasing to Tk 2.59, BSEC believes the recent price rally is not consistent with normal market behaviour.

BSEC Executive Director and spokesperson Abul Kalam said the commission had noticed unusual price increases and trading activities in the three stocks and had referred the matter for investigation.

“The stock exchange will conduct a detailed investigation and submit a comprehensive report. Necessary actions will be taken based on the recommendations of the investigation,” he said.