Delta life share price fly high without any reason


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Delta life share price fly high without any reason

Delta Life share has been increased about 200 per cent during last 6 months amidst uncertainties and controversies into the company price has risen 199 percent in six months.
The share was trading at the Dhaka Stock Exchange (DSE) on Tuesday, ) October 5 between Tk 184 and 188, says dse website.
Delta Life Insurance Company has not been able to publish its audited financial report for two years due to non-approval of actuarial basis from the insurance development and regulatory body. As a result, no annual general meeting was held and no dividend was declared.
Allegations of various irregularities were raised and the board was dissolved and an administrator was appointed. The administrator was also changed after four months.
Market observation shows that on April 4, the share price of Delta Life on the Dhaka Stock Exchange (DSE) was Tk 72.40 . Since then, Delta Life’s share price has started rising. On June 26 this year, the company had the highest turnover of 15 million shares. The last time the company’s share price stood at Tk 18.70 paise. More than 16 lakh shares of the company were traded on the DSE today.
A letter has also been sent by DSE asking for the reason for the increase in the share price of the company. In response, the company said yesterday that there was no price-sensitive data behind the recent abnormal rise in share price and increase in share transactions.
Delta Life has not yet released its audited financial report for the year ended 31 December 2019 due to non-receipt of clearance from IDRA. The issue of publication of unaudited and audited financial statements for the financial year 2020 is also pending. The company could not even release its financial statements for the first two quarters of the current 2021 financial year. Delta Life last released its unaudited financial statements for the third quarter of the fiscal year 2019 (July-September).
In addition to the financial report, the company’s annual general meeting (AGM) is also stuck. The company’s investors have not received any dividend for two years. In this situation, analysts think that the jump in the share price of Delta Life is mysterious.
Meanwhile, when asked about the rise in Delta Life Insurance’s share price without any reason, Bangladesh Securities and Exchange Commission (BSEC) Executive Director and Spokesperson Mohammad Rezaul Karim told, “We are monitoring the rise in the company’s share price.” We have information on who is buying the shares of the company. Meanwhile, the sale of Delta Life shares by the ICB is under investigation. In this case, the commission will take action in case of any deviation from the securities law.
In February this year, the Insurance Development and Regulatory Authority (IDRA) removed Delta Life Insurance’s board and appointed an administrator to protect the interests of policyholders. However, the company’s board went to court later to challenge the decision. The company also alleged bribery against the IDRA chairman. The Anti-Corruption Commission (ACC) is now looking into the matter. On the other hand, the IDRA chairman has also filed a case against the board members of the company. In the meantime, the company has been subjected to a special and investigative audit by the IDRA, which has also uncovered several irregularities. BSECO has taken special initiative to audit the financial report of the company.
In addition, the National Board of Revenue has also accused Delta Life of large-scale revenue evasion. All in all, Delta Life Insurance is plagued by four-pronged problems. Although these problems of the company are not reflected in the share price.



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