Fareast Islami Life share price soars 65% in nine days
The company said that it has no undisclosed PSI regarding the matter
Publicly listed Fareast Islami Life Insurance Company Ltd posted a 65% share price hike during the last nine trading days at the Dhaka Stock Exchange (DSE).
The life insurer's stock price reached Tk82.6 per share on Monday, which was Tk50.1 on 29 December last year.
On 9 January, the DSE sent a query letter to the company seeking an explanation behind this unusual price hike. The company replied that it has no undisclosed PSI regarding the matter.
In September last year, the Bangladesh Securities and Exchange Commission (BSEC) reconstructed the company's board to protect investors' interests.
Before that, the securities regulator appointed A Wahab & Co Chartered Accountants as a special auditor to audit the company's financial statements for 2016, 2017, and 2018.
It is alleged that Fareast Islami Life does not meet customer claims duly for which they suffer even after the policies mature.
Also, an investigation by BSEC found that the company's owners embezzled and laundered more than Tk2,125 crore from the company in the past decade.
Fareast Islami Life was incorporated on 29 May 2000 and was listed on the stock exchanges in 2005.
Sponsors and directors jointly hold 30.55%, institutional investors 41.19%, foreign investors 0.81%, and general investors 27.45% shares in the company.
