The investors recently lodged complaints with the commission about bidding system irregularities
The securities regulator has formed a probe committee to check if there are any technical irregularities in fixing the cut-off price of the companies who are entering the share market under the book building method.
Rajib Ahmed, director of the Bangladesh Securities and Exchange Commission (BSEC), has been made the convener of the committee.
The other members of the committee include Md Faruq Hossain, deputy director, and Shahidul Islam, IT officer of the commission.
BSEC sources said the investors recently lodged complaints with the commission about the bidding system irregularities.
In the complaints, they alleged technical irregularities in the bidding process.
They claimed that the stock exchange might be involved in the irregularities.
The commission then formed the probe committee to investigate the allegations, sources said.
Now, the committee is investigating if there are any technical irregularities in the recent bidding of Walton Hi-Tech Industries.
BSEC Executive Director (surveillance) Md Saifur Rahman told The Business Standard, "A probe committee has been formed to check the overall process and if there is any technological glitch."
He said that the committee is conducting investigations and declined to comment further as the report is yet to be submitted.
However, he could not specify when the report would be submitted in the light of the current situation though the committee was asked to submit it by seven working days.
The allegation of irregularities in setting cut-off price in the book building method is nothing new. The bidding system experienced changes in the past because of such allegations.
In the latest update, to stop all irregularities, the biddings are conducted through the Dutch auction method.