The securities regulator has fined three companies Tk23,00,000 for manipulating CVO Petro Chemical Refinery Limited scrips.
The scrips have been manipulated between April and August last when prices of those jumped by more than 100% to over Tk634 per share.
Bangladesh Securities and Exchange Commission (BSEC) has found a bank, an issue management company and a brokerage firm indulged in influencing price hike of the scrips, said the regulator in a statement yesterday.
It said for playing role in abnormal share price hike of CVO Petro Chemical, Bangladesh Development Bank was fined Tk10,00,000, Prime Finance Capital Management Ltd Tk7,00,000 and PFI Securities Tk5,00,000.
The commission has also decided to appoint a chartered accountant firm to carry out a special audit of the company.
Share trading of the CVO Petro Chemical remained suspended since September 24 when the Dhaka Stock Exchange (DSE) opened probe into the abnormal price hike in the low cap company’s stock.
The company reported a net profit after tax of Tk47,40,000 with earnings per share of Tk0.26 during January-March period.
On September 15, the BSEC had launched a probe against CVO Petrochemical and other low cap companies, including Mithun Knitting, Tallu Spinning, JMI Syringes and Medical Devices, Alhaj Textiles, Bangas, Modern Dyeing and Anawar Galvanising for the unusual hike of their share prices.
The BSEC investigative team has recently submitted their probe reports against those low cap companies’ unusual share price rise. An official said the team found some institution involved with the price manipulation of the low cap companies.
