Staff Correspondent

The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into the unusual surge in share prices and trading volumes of Bangladesh National Insurance Company Limited, suspecting potential market manipulation.

According to market experts, the company's share price has soared by an alarming 232 percent compared to its Net Asset Value Per Share (NAVPS), rendering the stock heavily "overvalued." BSEC's Surveillance Department has directed the Dhaka Stock Exchange (DSE) to conduct a thorough investigation and submit a comprehensive report within 30 working days.

Data shows that for the half-year ending January–June 2026, Bangladesh National Insurance’s NAVPS stood at Tk 34.26. However, the company's closing share price reached Tk 113.60, marking an abnormal premium of Tk 79.34 (232%) over its net asset value. Furthermore, over the preceding three months, the share price jumped by 39 percent—climbing from Tk 81.60 on May 20, 2026.

Market analysts suspect that a syndicated ring is artificially inflating the stock price through coordinated trading and rumors to offload overpriced shares onto unsuspecting retail investors, putting them at high risk of substantial financial losses

Experts analyzing the company's financial statements have also noted irregularities. For the first half of 2026, the company’s total income, including premiums, rose by 20 percent year-on-year to Tk 43.08 crore. Paradoxically, during the same period, management expenses, re-insurance, and claims dropped by 28 percent to Tk 24.59 crore.

Insurance specialists point out that an increase in premium income typically drives up management expenses. The inverse trend observed in Bangladesh National Insurance suggests that authorities may have manipulated financial statements to artificially inflate reported profits.

Wary of potential risks, retail investors have begun pulling out of the stock. General public ownership in the company dropped by nearly 3 percent over the first seven months of 2026, sliding from 33.74 percent on December 31, 2025, to 31 percent by July 31, 2026. Currently, the company’s paid-up capital stands at Tk 44.25 crore, with sponsor-directors holding 60.13 percent and institutional investors holding 8.87 percent.

Md. Shahed Imran, Managing Director of NLI Securities Ltd., emphasized that regulatory bodies must take swift action against overvalued stocks and potential internal complicity. Investors have strongly urged the BSEC to bring the manipulators to justice to restore market stability and protect general investors.