BSEC fines 8 individuals, 4 insttns Tk10.13cr
Staff Reporter :
The Bangladesh Securities and Exchange Commission (BSEC) have imposed a fine of Tk 10.13 crore on eight individuals and four institutions for violating securities laws.
The penalties were issued as part of the regulator’s ongoing efforts to ensure transparency and discipline in the capital market.
The eight individuals and four institutions were much talked about for their illegal involvement in the stock market in January last year.
After finding proof of manipulation through investigation, the BSEC on 10 December last year decided to impose the fines.
The market regulator, sent a letter to the accused in early January detailing the manipulations and fines, published the enforcement report on Tuesday to its website.
According to the enforcement report, the BSEC fined Nabil Group Managing Director Md. Aminul Islam and his institutions and government official Md. Abul Khair Hiru, a prominent investor in the stock market, and his associates and ordered them to deposit the fine within 30 days.
According to BSEC, the Dhaka Stock Exchange (DSE) investigated the share transactions of Orion Pharma Limited from September 21 to October 14, 2021. During this time, the share price increased by about 69 percent from Tk 68.20 to Tk 115.20.
Nabil Feed Mills Limited, Nabil Naba Foods Limited and the Managing Director of the two companies, Md. Aminul Islam, played a role in increasing the price of Orion Pharma by trading a significant amount of shares during this period.
Md. Aminul Islam has been fined Tk 3.2 crore, Nabil Feed Mills Limited Tk 1 million and Nabil Naba Foods Limited Tk 1 million for violating the Securities Act.
On the other hand, the DSE investigated the share trading of NRB Commercial Bank from October 7 to October 27, 2021. During this time, the share price increased by about 61 percent from Tk 23.80 to Tk 38.30.
Md. Abul Khair Hiru, a prominent investor in the stock market and Deputy Registrar of the Department of Cooperatives, and his associates played a role in increasing the price of NRB Commercial Bank by trading a significant amount of shares.
Md. Abul Khair Hiro was fined Tk 2.30 crore, his father Abul Kalam Matabar Tk 4.15 crore his wife Kazi Sadia Hasan Tk 11 lac, his sister Kanika Afroz Tk 1 lac, his mother Aleya Begum 1 lac, his brothers Sajid Matabar and Mohammad Bashir 1 lakh each, and his affiliated company DIT Cooperative Limited Tk 12 lac and Monarch Holdings Limited Tk 1 lakh.
Md Abul Kalam, director of the BSEC and spokesperson told The New Nation that for restoring confidence of the investors and creating a congenial atmosphere of the market the regulatory authority took the legal action those who were involved in the illegal activities and manipulation.