Fareast Islami Life Insurance share soars 65% in 9 sessions

Scam-hit Fareast Islami Life Insurance share price has surged around 65 per cent in nine trading days on the Dhaka Stock Exchange (DSE).

On Monday, its share price rose 9.99 per cent to Tk 82.60, a stellar rise from Tk 50.1 recorded on December 29 last year.

“There is no undisclosed price sensitive information of the company for recent unusual price hikes and increase in the volume of shares,” said the company in response to a DSE query.

Former Chairman Md Nazrul Islam and directors committed serial financial crimes and siphoned off policy holders’ funds worth more than Tk 2,100 crore between 2010 and 2020, found the securities regulator BSEC after a special audit last year.

The directors embezzled the funds by showing manipulated prices while buying lands, investing in their own companies and providing advances to fraudulent cooperatives, the audit found.

After the special audit report, the securities regulator in September of last year ordered the dissolution of the board of directors of the insurance company and appointed 10 independent directors to run it.

The BSEC restructured the board and appointed Dr Muhammad Rahamat Ullah, who is the Dean of Law Department at Dhaka University, as the chairman of the company. But in October he resigned citing his personal busyness.

The BSEC directed the new board to restructure top management and bring back assets within six months and take legal action against those who have committed crimes and money laundering in the company for 10 years.