• Thursday, Nov 14, 2019
  • Last Update : 09:01 am

BSEC fines Tk2.30cr for manipulating share prices

  • Published at 09:46 pm February 13th, 2019

The commission declared the decision at a meeting held on Wednesday

The Bangladesh Securities and Exchange Commission (BSEC) yesterday backtracked on its decision to sue two investors and a business entity for manipulating share prices of Shahjibazar Power Company Limited (SPCL), and has instead decided to fine them a total of Tk2.30 crore.

BSEC declared the decision at a meeting presided over by its chairman M Khairul Hossain, according to a press release. 

Previously, in June 2015, BSEC had slapped a fine of Tk4.82 crore on nine business entities and two individuals for their involvement in the abnormal rise of share prices of SPCL. 

The commission also decided to file a case against Prime Islami Securities Limited CEO Abul Kalam Eajdani, client of AIBL Capital Market Services Golam Mostofa, client of Vision Capital Management Nasima Akter Lata, and corporate client of PISL Star Share Bazar, at the capital market special tribunal for violating various securities regulations.

After that, the commission exempted Abul Kalam Eajdani from litigation in exchange for a fine of Tk30 lakh.

After around four years, BSEC fined Star Share Bazar Tk1 crore, Golam Mostofa Tk80 lakh and Nasima Akter Lata Tk50 lakh, exempting them all lawsuits.

The commission changed their verdict after the defendants' application for review of their penalty.

BSEC said that the entity and the two investors for serial trading and created an abnormal hike in prices of SPCL's shares.

Prices of SPCL shares had increased to Tk338.8 in December 2014 from its debut with Tk25 on July 15 in the same year.

At the meeting, the commission also fined Saad Securities Tk2 lakh and Salta Capital Limited Tk3 lakh as both brokerage houses violated a number of securities laws including shortfall in consolidated customers' accounts, providing loans in cash accounts and receiving more than Tk5 lakh in cash from the clients.