Four fined Tk 5.1cr for stock manipulation
The Bangladesh Securities and Exchange Commission (BSEC) yesterday decided to fine four investors and their associates Tk 5.10 crore for manipulating shares of Bangladesh Autocars and Legacy Footwear.
Between May and August last year, the price of each share of Legacy Footwear rose four times to Tk 272 and Bangladesh Autocars three times to Tk 456, which prompted the regulator to suspend their trading.
The commission in its investigation has identified some investors who played a role in the unusual price hike, the regulator said in a statement.
They are: Abdul Kayum and his associates; Moinul Haque Khan and his associates; Mahfuz Alam; and Md Azimul Islam and his associates. And in so doing, they violated two sections of the Bangladesh Securities and Exchange Commission ordinance, 1969, according to the statement.
Subsequently, Abdul Kayum and his associates as well as Md Azimul Islam and his associates will be fined Tk 2 crore each, while Moinul Haque Khan and his associates will be fined Tk 10 lakh and Mahfuz Alam Tk 1 crore.
The regulator also decided to issue a warning to the Commerce Bank Securities and Investments for its assistance to the players.
Also at yesterday's meeting, which was chaired by BSEC Chairman Khairul Hossain, it was decided that Bangladesh Autocars and Legacy Footwear will now be traded at the main market instead of the spot market.
In October last year, trading of the two stocks was allowed only in the spot market, where buyers have to purchase the shares upfront with cash.
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