FE REPORT
The Bangladesh Securities and Exchange Commission (BSEC) has directed the Dhaka Stock Exchange (DSE) to look into "suspicious trading" of Provati Insurance after detecting unusual price movements of the stock and trading patterns.
The move came after Provati Insurance's share price soared 55.16 per cent in just three months, climbing from Tk 30.40 on March 31 to Tk 67.80 on July 2 this year. The rally was observed despite the company's weak financial performance in recent years.
In a letter issued this week, the regulator instructed the premier bourse to submit a comprehensive probe report within 30 working days.
The commission said it had observed "abnormal price movement and trading behaviour" in the insurer's shares. It asked the DSE to determine whether any coordinated, manipulative or non-genuine trading practices were carried out by investors.
Investigators will also examine whether any prohibitive insider trading occurred, including the misuse of unpublished price-sensitive information (UPSI). Besides, the DSE has been directed to assess whether the stockbrokers, dealers and their authorised representatives complied with the margin rules and other relevant orders, notifications and directives issued by the commission.
The bourse has also been tasked with determining whether any broker, dealer or authorised representative facilitated the suspicious trades or failed to prevent them, and to identify any other violations of securities laws.
The commission further instructed the DSE to create awareness among authorised representatives (ARs), compliance officers and chief executive officers (CEOs) of brokerage houses regarding suspicious trading practices that may constitute violations of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorised Representative) Rules, 2000.
Provati Insurance has been reporting weaker earnings since 2022. In 2025, the insurer posted a 14 per cent year-on-year decline in profit to Tk 70 million.
However, the company reported a modest improvement in the first quarter of 2026, with earnings per share (EPS) rising to Tk 0.49 for the January-March period from Tk 0.38 in the corresponding period of the previous year.
The Chittagong Stock Exchange (CSE) has also been asked to provide necessary trading data and support the DSE in the investigation.
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