Two including brokerage firm chairman convicted for stock manipulation

A Dhaka court has found the chairman of brokerage firm Securities Promotion and Management Ltd (SP) and one of its clients guilty of stock manipulation.

The special tribunal for stock market-related cases on Wednesday delivered the verdict in the case, which was filed in 2004.

The court ordered two years in jail for SPM Chairman Shelly Rahman and the firm’s client Syed Mahibur Rahman. They have been also slapped a fine of Tk 1.5 million each.

The convicts have been absconding since the market regulator initiated the case.

In 1998, the market regulator opened an inquiry against the two for unusual trading of Kashem Silk Mills stocks.

The investigation concluded that SMP Managing Director Lutfur Rahman, Chairman Shelly Rahman and the firm’s client Mohibur Rahman colluded to manipulate stock price by unusual trading.

The market regulator prosecuted the three in 2004. Charges against the SPM managing director was dropped as he had died.

The case was transferred to the special tribunal in February this year.