SEC to probe United Airways 'incident'

Bangladesh's capital market regulator has decided to investigate the recent chaos caused by the United Airways.

A three-member committee will look into the resignation of the listed company's chairman and MD, grounding flights and the 'unusual' decline in its share prices, Bangladesh Security and Exchange Commission (SEC) spokesperson Saifur Rahman told bdnews24.com on Sunday.

The private airline, accused of poor services, cancelled all its local and international flights from Sept 25 due to "financial crunch", two days after its Chairman and MD Tasbirul Ahmed Choudhury resigned.

On Thursday, the company's shares fell by nearly six percent and were traded at Tk 10.9.

Its market capital declined by Tk 510 million in a single day to Tk 6.19 billions.

United reinstated Choudhury as its MD last Friday and resumed its flights from the following day.

SEC spokesperson Rahman said, "The investigation committee will look into various issues, including United Airways' suddenly closure of business and its resumption two days later after reforming its board, and the unusual decline in its share prices."

Rahman, also a SEC executive director, said the committee formed on Sunday had been asked to file a report within 21 days.