Shares of 12 listed companies manipulated
The Bangladesh Securities and Exchange Commission (BSEC) investigation committee has found various irregularities committed by six investors in the transaction of shares of 12 listed companies. The commission has decided to take legal action against them.
Stock market regulator BSEC made the decision at a commission meeting held in Dhaka on Thursday, presided over by its chairman, M Khairul Hossain.
The commission has decided to send the investigation report to the Enforcement Department to take legal action against those involved in non-compliance with stock market laws and regulations.
In addition, until the next legal action is taken pursuant to the investigation report, funds, the transfer of shares, or transfers by link account will be closed for the six investors in question. However, in the secondary market, they can trade shares regularly.
The investors in question are: Bishwajit Das and his wife (name not mentioned), Kazi Md Shadat Hossain and B and BS Trade International, Md Saif Ullah, Hosam Md Siraj, ASS Ahsan Habib Chowdhury, and Md Lutfur Gony Titu and his wife (name not mentioned), and his company Satrang Agro Fisheries Limited.
The 12 listed companies are: United Power, VFS Thread Dyeing, IPDC Finance, SS Steel, Intech Limited, Saiham Textile Mills, Saiham Cotton, Rupali Life Insurance, Monno Ceramics, Monno Jute Stafflers, Investment Corporation of Bangladesh (ICB) and Dutch-Bangla Bank Limited.
The commission also decided to suspend securities trading of Monno Ceramic Industries Ltd and sent the shares of the company to the spot market, effective Sunday.
The Dhaka and Chittagong stock exchanges are set to suspend the company’s trading from Sunday and place it under compulsory spot for trading.
The BSEC also decided that the shares of Monno Ceramics and Monno Jute Stafflers held by Monno Welfare Foundation will remain frozen until legal action is taken pursuant to the investigation report.
The commission meeting also decided to suspend Al-Haj Textile shareholder director Md Shamsul Huda’s shares due to violations of securities laws, and the commission directed the Enforcement Department to take action against him.
In July, securities regulator BSEC formed a four member inquiry committee, headed by its director Rejaul Karim, to investigate the role of intermediaries in the current bear market environment. The committee was also directed to look into the unusual price movement of listed securities.