The Bangladesh Securities and Exchange Commission (BSEC) has fined six individuals and one institution a total of Tk 44.40 crore for manipulating shares of two listed companies — New Line Clothings Limited and Pioneer Insurance Limited — back in 2021.
At a commission meeting on Wednesday, the regulator decided to impose penalties after revisiting earlier investigations that had been left unattended by the previous commission.
In the case of Pioneer Insurance, investor Sheikh Farook Ahmad was fined Tk 30.32 crore, the single largest penalty, while former NRB Bank chief financial officer Mohammad Kamrul Hasan was fined Tk 75 lakh.
Kamrul Hasan has also been banned for five years from holding any position in capital market-related entities or trading shares.
The manipulation occurred between April and September 2021.
For New Line Clothings, manipulation carried out between May 24 and July 5, 2021, four individuals and one company were fined a combined Tk 13.33 crore.
The penalties include Tk 1.14 crore for Riaz Mahmud Sarkar, Tk 4.02 crore for Abul Bashar, Tk 1.69 crore for Md Selim, Tk 2.20 crore for Md Jamil, and Tk 4.28 crore for Sarkar Printing and Publishing.
BSEC said its investigations had found clear evidence of share manipulation during the stated periods.
However, under the leadership of the previous commission chaired by Shibli Rubaiyat-ul-Islam, no action was taken at the time and the reports were shelved.
After the government changed August 5, 2024, the newly appointed commission began reviving old cases and taking measures against manipulators.
The regulator also decided to request the Financial Institutions Division to take legal action against controversial government official Abul Khair Hero, a 31st BCS (Cooperative) cadre officer, for alleged involvement in share manipulation.
He has already been made officer on special duty.
BSEC will also send a letter to the Anti-Corruption Commission along with its investigation report, seeking further probe into Hero’s role in the Fortune Shoes share scam.
In addition, BSEC announced that the Asian Tiger Sandhani Life Growth Fund, a closed-end mutual fund, has completed all steps for dissolution.
Its trustee, Bangladesh General Insurance Company, will now be instructed to begin repayments to unit holders.
