The securities regulator has asked the Dhaka bourse to probe into "abnormal" price movement and trading pattern of Aamra Technologies.
As per the regulatory instruction, the Dhaka Stock Exchange (DSE) will have to submit a comprehensive investigation report to the commission within 30 working days.
Aamra Technologies came under the regulatory scanner after the company’s stock price escalated 108 per cent to Tk 23.10 a share in the five months through August 9. Later, the stock started falling and closed at Tk 20.30 on Thursday on the DSE.
The securities regulator has set some terms of reference (ToR) for the probe.
The Dhaka bourse is required to identify coordinated, manipulative, or unlawful trading practices undertaken by investors. It has also been asked to detect any insider trading activities, including the misuse of unpublished price-sensitive information.
The DSE will have to examine whether margin rules, relevant orders, notifications, and regulatory directives were complied with by the stock brokers or dealers concerned, or authorised representatives.
The role and responsibilities, if any, of the stock brokers and dealers concerned behind the company’s abnormal price movements and trades will also be examined.
The securities regulator has also asked the Dhaka bourse to create awareness among authorised representatives, compliance officers and chief executive officers of brokerage firms so that they inform the regulatory bodies about any abnormal price movements and suspicious share trading.
Meanwhile, the auditor of Aamra Technologies, a ‘Z’ category company, defined some inconsistencies in its financial statements for FY25.Financial literacy course
The auditor was unable to obtain sufficient appropriate audit evidence regarding the completeness and accuracy of trade and other payables due to the absence of external balance confirmations from the Bangladesh Telecommunication Regulatory Commission (BTRC) and the Bangladesh Telecommunications Company (BTCL).
Hence, the auditor was unable to determine whether any adjustment to the financial statements was necessary.
Also, the company did not deposit the applicable dividend tax to the relevant tax authority.
In addition, Aamra Technologies did not properly deduct applicable tax and VAT on purchases during the year as required under the applicable tax laws of Bangladesh.
Consequently, the financial statements are materially misstated due to the non-recognition of the related tax liabilities.
