B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into unusual movements in the share price and trading of City Insurance PLC.

The commission has directed the Dhaka Stock Exchange (DSE) to conduct the investigation and submit a detailed report within 30 working days.

The probe comes after the listed insurer’s share price rose significantly without the disclosure of any price-sensitive information (PSI). The share price increased 58.54% over the past nine months, rising Tk 49 from Tk 83.70 on January 6 to Tk 132.70 on October 5.

BSEC Executive Director and spokesperson Md Abul Kalam said the unusual price and trading activity had drawn the commission’s attention and did not appear normal. He said the DSE had been instructed to identify the actual reasons behind the movement and that legal action would be taken if any irregularities were found.

The investigation will cover City Insurance’s share transactions from January 1 until the date of the BSEC’s investigation order.

As part of the probe, the DSE will examine whether investors engaged in coordinated or manipulative trading, whether insider trading took place using undisclosed price-sensitive information, and whether stockbrokers, dealers and their representatives complied with margin-related rules and commission directives.

The investigation will also assess whether relevant market intermediaries failed to prevent suspicious transactions or bear any responsibility for them, as well as whether any other securities laws or regulations were violated.

The BSEC has also directed the chief executive officers, compliance officers and authorised representatives of the concerned brokerage firms to strengthen awareness regarding such transactions.

The commission said the suspicious trading could involve potential violations of the Code of Conduct under the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorised Representative) Rules, 2000, including provisions 6 and 8 and Rule 11.