B Mirror Report : The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into unusual share price increases and trading activities of six listed companies amid concerns over possible market manipulation and insider trading.

The companies under scrutiny are Sonargaon Textiles, Shyampur Sugar Mills, Bangladesh National Insurance Company, Nahi Aluminum Composite Panel, Regent Textile Mills, and Al-Madina Pharmaceuticals Limited.

According to the regulator, the companies’ share prices rose sharply without any disclosed price-sensitive information (PSI), and the firms failed to provide satisfactory explanations to the stock exchanges regarding the sudden price movements. The investigation has been initiated to safeguard the interests of general investors.

The BSEC has directed the Dhaka Stock Exchange (DSE) to submit a comprehensive investigation report within 30 working days from the date of the directive.

The probe will examine whether there was any coordinated market manipulation, abnormal trading activity among investors, or insider trading based on undisclosed price-sensitive information. It will also review whether stock brokers, dealers and their authorised representatives complied with margin rules and other regulatory requirements, as well as assess the role of intermediaries in any suspicious transactions.

BSEC Executive Director and spokesperson Abul Kalam said unusual price movements and abnormal trading activities had been observed in the six companies, but none could provide a convincing explanation for the surge.

Earlier, trading in two of the companies was temporarily suspended by the stock exchange. The regulator said appropriate legal action would be taken if any irregularities are detected following the investigation.

Among the companies, Regent Textile Mills has drawn particular attention as its share price surged despite its operations remaining closed for the past four years. The stock climbed about 83.7%, rising from Tk4.30 on 18 May to Tk7.90 on 15 June, without any business developments or PSI disclosures. The company has not paid dividends since 2021 and its factory has remained shut since at least September 2023.

Other companies also posted sharp gains in recent months. Sonargaon Textiles surged more than 161%, Shyampur Sugar Mills nearly 72%, Bangladesh National Insurance around 116%, Al-Madina Pharmaceuticals over 125%, and Nahi Aluminum Composite Panel about 81%, despite the absence of any disclosed price-sensitive information.

The regulator said the investigation forms part of its efforts to strengthen market surveillance and ensure transparency in the country’s capital market.