The Bangladesh Securities and Exchange Commission (BSEC) formed a two-member inquiry committee on Tuesday to investigate the unusual increase in the price of Gemini Sea Food Limited shares.
The company's share price rose 51% in 14 days, and stood at Tk593.4 on 19 October. On Tuesday, its shares closed at Tk497.5 per share at the Dhaka Stock Exchange (DSE).
BSEC's Additional Director Mohammad Rakibur Rahman, and Assistant Director Foysal Islam, are the committee members.
In order to identify any market manipulation attempts, the committee will review the company's recent unaudited and audited financial statements.
Also, it will see whether there was any insider trading or other malfeasance behind the share price hike.
The committee will submit its findings to the BSEC within 20 working days.
In February this year, Gemini Sea Food submitted a plan to expand its business to the BSEC. It wanted to produce frozen foods such as chicken nuggets, sausages, meatballs, fish-balls, shrimp-balls, fish fingers, parathas, French fries, cutlets, and other edibles to penetrate the local market.
Gemini Sea Food is the pioneer in exporting certified organic shrimp from Bangladesh to EU retailers. It processes, packages, and exports quality frozen raw shrimp, cooked shrimp, and whitefish. The firm got listed on the DSE in 1985.
It exports its products to the US, UK, Germany, Denmark, the Netherlands, Belgium, and Russia.
Till 30 September 2022, sponsors and directors held 33.65%, institutions 6.42%, foreign investors 0.33%, and general investors 59.60% of company shares.