Three held for stock market manipulation

The detective branch of Dhaka Metropolitan Police on Friday arrested three individuals allegedly involved in manipulating stock prices and spreading rumours online to destabilise the share market.

Talking at a press briefing at DMP Media Centre today, DB chief Harun Or Rashid said the arrestees often shared supposed price-sensitive information (insider information) before its official release, on various social media groups, which was mostly fabricated and false. As a result, investors suffered losses.

Bangladesh Securities and Exchange Commission filed a case under the Cyber Security Act in this regard with Ramna Police Station.

The arrestees are -- Amir Hossain alias Nurnurani, 37, admin and moderator of 8-10 social media groups, Nurul Haque Harun, 52, vice chairman of Bangladesh Capital Market Investors Union Council, and Abdul Qaiyum, 39, involved with a brokerage house.

Of the arrestees, Amir is accused in 11 cases.

The DB said that Amir operated 8 to 10 groups on Facebook, WhatsApp, and Telegram, where he engaged in spreading rumours and manipulating market prices.

Members of these groups had to pay a specific fee to join.

Nurul allegedly demanded bribes from various companies in the name of the investor's association and Qaiyum provided information about various shares in exchange for money. The syndicate members even defamed listed companies on online platforms if they didn't give them bribes, and even attacked their offices on a few occasions, Harun said.

In the social media groups, the arrestees provided false and misleading information in the names of various organisations associated with the BSEC, the DB chief said.

They falsely advertised various stock shares, inflating their prices and selling them to unsuspecting investors at higher rates.

If there was a profit in the share, they received a portion of the profit. However, if there was a loss, they did not take responsibility.

Any information exchange regarding the price of any share is illegal according to the laws of the BSEC, Harun said.