9 individuals and institutions have been fined Tk 428 crore 7 lakh in the case of manipulation in share transactions of Bangladesh Export Import Company (Beximco) listed in the stock market.
This decision was taken at the meeting of Bangladesh Securities and Exchange Commission (BSEC) on Tuesday. Also in the commission meeting it was decided to inspect the use of IPO (initial share) money of 9 more companies.
This information was informed in a press release signed by BSEC spokesperson Farhana Farooqui.
This is the largest fine against manipulation in the history of the country’s stock market. The company is owned by former Prime Minister Sheikh Hasina’s private industry and investment advisor Salman F Rahman, a much-criticized businessman.
Those who have been fined are – Marzana Rahman Rs 30 crore, Trade Next International Rs 4 crore 1 lakh, Mushfiqur Rahman Rs 125 crore, Mumtazur Rahman Rs 58 crore, Jupiter Business Rs 22 crore 50 lakh, Apollo Trading Rs 15 crore 1 lakh, ART International Rs 70 crore, Abdur Rauf was fined Tk 31 crore and Crescent Tk 73 crore.
According to the relevant sources, these accused illegally traded the shares of the company from July 28, 2021 to March 10, 2022. Such actions are a violation of securities laws. Based on the report sent from the Dhaka Stock Exchange, this decision was taken by hearing the concerned parties.
Sources also said that everyone was aware of the manipulation of the company’s shares. But because Beximco owner Salman F Rahman is very influential, no action was taken against him. At this time many big entrepreneurs were forced to buy shares. Some wanted to sell shares when the share price rose too much. But by not allowing them to sell, an artificial crisis has been created. Apart from this, Salman F Rahman’s name is also involved in the share scams of 1996 and 2020-11. On August 5, when the political context of the country changed, Salman F. Rahman tried to escape. Later he was arrested by law enforcement. After several rounds of remand, this businessman in the financial sector is currently in jail.
On the other hand BSEC has decided to inspect 9 more companies. These companies will look into the use of money collected from the stock market through IPO. The companies are – Bangladesh Shipping Corporation, Best Holdings (La Meridien Hotel), Index Agro Industries, JMI Hospital and Requisite Manufacturing, Lube Ref (Bangladesh), Navana Pharmaceutical, Ring Shine Textile, Sikdar Insurance Company and Silva Pharmaceuticals
