Dhaka, Bangladesh (BBN)- The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday fined Golam Mostafa BDT 30 million and Alhaj Md. Mosaddek Ali Falu BDT 10 million for their alleged involvement in unusual manipulative share transactions.
The BSEC imposed the fine at its meeting held at the BSEC office in the capital with its chairman professor M. Khairul Hossain in the chair.
The regulator said fine was imposed on Mr. Falu and Mr. Mostafa after conducting further investigations twice in line with the recommendations made by Khondkar Ibrahim Khaled-led probe body.
Khondkar Ibrahim Khaled-led probe body was formed by the government after the largest ever stock market debacle occurred in December (2010)-January (2011).
According to BSEC, Mr. Falu executed unusual trading of the shares of IFIC Bank and BEXIMCO Limited.
On the other hand, Mr. Mostafa executed unusual trading of the shares of Eastland Insurance Company, Navana CNG, Olympic Industries, Union Capital, LankaBangla Finance and First Lease International.
“It was proved through the analysis of facts and findings that Md. Mosaddek Ali and Golam Mostafa influenced the share price by creating artificial demand through their omnibus accounts,” it said in a statement.
It also said that Mr. Falu and Mr. Mostafa influenced the share prices by creating ‘false and misleading’ appearance of their active trades. “Both of them were granted hearing by the regulator. The regulator fined them as their explanations were not acceptable to the BSEC.”
BBN/SSR/AD-29Oct14-11:50 pm (BST)
