The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into the unusual rise and trading activity of shares of K&Q Bangladesh Limited, a company listed on the stock market. The directive comes in response to growing concerns in the market over the recent sharp increase in the share’s price and volume of trades.

In a letter signed by BSEC Assistant Director Lamia Akter, the main stock exchange, Dhaka Stock Exchange (DSE), has been instructed to conduct a comprehensive investigation into the abnormal trading and price surge of K&Q shares. The DSE has also been asked to submit a report to the BSEC within 30 working days.

According to market data, on June 15 of this year, K&Q’s share price was BDT 190.70. Within just three months, by Sunday (October 6), the share price reached BDT 450.90—its highest level in two years. As of Monday (October 7), the price slightly declined to BDT 442.50.

The BSEC’s letter states that this unusual activity is “suspicious” and indicates “artificial demand” may have been created. The commission noted that such behavior undermines market transparency and investor confidence. Stock dealers, stockbrokers, and authorized representatives have already been warned not to engage in manipulative trading.

The BSEC made it clear that such suspicious trades would be treated as serious violations. These would be considered breaches of Clauses 6 and 8 of the Code of Conduct in the Second Schedule of the Securities Act, as well as Rule 11 of the Securities and Exchange Commission (Stock Dealer, Stock Broker, and Authorized Representative) Regulations, 2000.

Confirming the investigation, BSEC spokesperson Mohammad Abul Kalam told ShareNews, “The recent unusual activity in K&Q’s trading and pricing has not escaped our attention. That’s why DSE has been specifically instructed to determine whether any manipulation has occurred in the company’s shares.”

The spokesperson further said, “Our surveillance team is keeping a close eye on companies like K&Q and GQ Ballpen, where we are seeing unusual patterns in trading and price movements. Through this investigation, we want to make it clear: no one will get away with manipulation this time.”

Following this stern warning, market stakeholders are hopeful that BSEC will take swift and effective actions that will restore investor confidence and send a positive signal for the overall stability of the capital market. The regulator has now adopted a zero-tolerance policy to restore discipline in the stock market.

Analysts believe that if BSEC can take timely and exemplary action, the trend of such manipulation and abnormal trading can be significantly reduced in the future. This will result in a more transparent, credible, and secure market.