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committee to investigate 'unusual' share trading of Navana CNG,
which received a bonanza from the market through offloading shares
directly within a record low time. The stock market regulator also
asked the committee to submit the probe report within October 8. The
two-member body, headed by SEC Executive Director ATM Tariquzzaman,
was formed after the market watchdog observed unusual trade of the
company's shares in the stock exchanges through designated brokers
into the first five trading days of listing. The other committee
member is SEC Director Mohammad Rezaul Karim. ICB Securities Trading
Company and Sharp Securities were the designated selling agents for
Navana CNG. "The commission formed the probe committee to find out
whether there were any irregularities or manipulation," said an SEC
high official. Navana CNG Ltd, a sister concern of Navana Group,
debuted on the stock exchanges on August 30 under direct listing
method and it offloaded a major portion at high prices in the first
five trading days. It sold half of its shares, or 1.81 crore ordinary
shares of Tk 10 each, within just seven trading days. On the first
day, the price of a Navana CNG share rose as high as Tk 270 before
closing at Tk 190.48. The average price of the shares was between Tk
200 and Tk 205 in the first five days. The CNG (compressed natural
gas) conversion and re-fuelling company received a bonanza of around
Tk 360 crore against Tk 18 crore shares. The hefty gains made by the
private company also prompted Dhaka Stock Exchange to decide against
allowing any other private company to join the bourses under direct
listing system. The DSE at a board meeting on Tuesday decided that no
companies except the government- owned ones will be listed directly on
the stock exchanges. Earlier, two other private sector companies --
Shinepukur Ceramics and ACI Formulations -- also made hefty business
by offloading shares under direct listing system. To protect such an
unusual flight of capital from the market, a special committee formed
by the SEC had recommended some amendments to the existing direct
listing rules. But neither the SEC nor the DSE took initiatives to
bring changes in the direct listing method based on the
recommendation. Besides the three private companies, five government
entities -- Desco, Power Grid, Jamuna Oil, Meghna Petroleum and Titas
Gas -- were listed directly on the bourses.
