A committee has completed its inquiry into allegations of irregularities and manipulation involving six companies, including Beximco Green Sukuk, IFIC Township Bond, Best Holdings IPO, and Fortune Shoes, and submitted its report.
On Tuesday, committee members handed over the six investigation reports to Bangladesh Securities and Exchange Commission, or BSEC, Chairman Rashed Maksud.
In a press release, BSEC said the committee had completed investigations into the following companies and instruments:
- Beximco Green Sukuk Al Istisna
- IFIC Guaranteed Gazipur Sreepur Township Green Zero-Coupon Bond
- Best Holdings Limited IPO
- Fortune Shoes Limited
- Al-Amin Chemical Industries
- Quest BDC Limited
However, BSEC did not disclose the findings of the reports.
To uncover past irregularities, manipulation, and corruption in the stock market during the previous Awami League administration, BSEC formed the five-strong "Investigation and Inquiry Committee" on Sept 17.
The first phase of the investigation targeted 12 companies.
The committee is headed by Zia U Ahmed, founder and chairman of the US-based consulting firm Terra Resources International.
The committee was given 60 days to submit reports on irregularities in company and bond approvals as well as share price manipulation.
The committee’s key investigation areas were:
- Beximco Green Sukuk Al Istisna: Examination of all related aspects.
- IFIC Guaranteed Gazipur Sreepur Township Green Zero-Coupon Bond: Complete review.
- Best Holdings IPO: Investigation into the approval and all relevant issues.
- Al-Amin Chemical Industries: Probe into share acquisition manipulation in the block market, approval for transfer from OTC to SME platform, and share price manipulation.
- Fortune Shoes: Investigation into share price manipulation, irregularities in dividend distribution, and individuals/institutions involved in the stock price surge.
- Quest BDC (formerly Padma Printers & Colors Ltd): Probe into irregularities and manipulation in the stock market.
OTHER COMPANIES UNDER INVESTIGATION
The committee is also investigating the following companies:
- Chittagong Stock Exchange, or CSE, and Bashundhara Group’s ABG Limited: Review of strategic investor approval, share allocation, acquisition, and price determination.
- Sonali Paper & Board Mills Ltd: Examination of irregularities, stock manipulation, and its re-listing on DSE’s main board in 2020. Investigation into the individuals and firms involved in price surges.
- Ring Shine Textile Limited: Probe into capital raised through private and public offerings, inflated financial reports, and suspected money laundering via bank transactions.
- Acme Pesticides Limited: Investigation into stock manipulation, dividend irregularities, and misuse of IPO funds to repay National Finance loans.
- Emerald Oil Industries Limited: Inquiry into share acquisition, transfer, disclosure of price-sensitive information, and abnormal stock price increase in the secondary market.
- Coppertech Industries Limited: Investigation into irregularities and share price manipulation.
The committee is also investigating allegations of stock market manipulation involving 11 companies, including Beximco’s bonds and Bashundhara Group’s strategic investments.
