BSEC slaps Tk 2.30cr fine

The Bangladesh Securities and Exchange Commission (BSEC) has slapped fines amounting to Tk 2.30 crore on two individuals and a company for manipulating Shahjibazar Power Company's share price.

A BSEC probe in 2015 found Golam Mostafa, Nasima Akter Lata and Star Sharebazar had created an artificial demand in the secondary market in 2014 for Shahjibazar shares, which is in violation of the securities rules.

The regulator then decided to file a case in the special tribunal for stockmarket against them, but the individuals and firm appealed to the BSEC to settle the matter out of court.

At a commission meeting yesterday, the stock market regulator decided to fine Mostafa Tk 80 lakh, Lata Tk 50 lakh and Star Sharebazar Tk 1 crore.

The BSEC also fined two stockbrokers, Saad Securities and Salta Capital. Saad Securities was fined Tk 2 lakh for giving margin loans through cash accounts, providing loans to its directors and taking cash of more than Tk 5 lakh from its clients.

Salta Capital has been penalised Tk 3 lakh for having a fund shortage in consolidated customer accounts, taking cash of more than Tk 5 lakh from clients, giving margin loans through cash accounts and extending margin loans to buy junk shares.

Meanwhile, the stock market bounced back to the green yesterday after losing 64 points in the previous three trading days.

The broad index, DSEX, increased by 16.4 points, or 0.29 percent, to 5,748.31 points. Turnover, one the important indicators, dropped 20.9 percent to Tk 712.64 crore.

Among the major sectors, non-bank financial institutions gained 1.1 percent, telecommunication 1 percent and engineering 0.6 percent; pharmaceuticals though dropped 0.2 percent.

Fortune Shoes dominated the turnover chart with its transaction of 1 crore shares worth Tk 38.49 crore, followed by Monno Ceramics, United Power, Paramount Textile and Bangladesh Submarine Cable.

Gainers took a strong lead over the losers as 169 advanced, 136 declined and 42 issues remained unchanged on the DSE floor. Global Insurance was the day's best performer, advancing 10 percent, while Jute Spinners was the worst loser, shedding 9.96 percent.