Tk 25 lakh fine imposed for stocks manipulation
The Bangladesh Securities and Exchange Commission (BSEC) has fined one Md Louthful Goni Tito and his company Shatrong Agro Fisheries Tk 25 lakh for manipulating stock prices of Global Insurance through serial trading.
Serial trading is buying and selling of shares among the same beneficiary accounts in order to impact the share price.
Dhaka Stock Exchange ran an investigation between August 1 and August 21 in 2019. It found that of all the trade conducted of Global Insurance shares during the period, 54.39 per cent was by Tito, his spouse Shammi Neawaz and their company.
They bought and sold among themselves to raise the stock price, which is a clear breach of securities rules, said the DSE.
Tito and his associates gained around Tk 1.86 crore from the manipulation.
Following the DSE's findings, the BSEC took into account statements of the manipulators and then decided to impose the fine.