Home
+
Published : 01 Oct 2024, 07:57 PM
The Bangladesh Securities and Exchange Commission, or SEC, has hit nine individuals and institutions with a record Tk 4.28 billion for manipulating the share prices of Beximco Limited
The unprecedented fine was announced in a statement on Tuesday, marking the largest fine ever levied in the recent history of the capital market for such violations.
The action comes in response to allegations of collusion among the fined parties to inflate Beximco shares artificially.
SEC said the fines were imposed for violating securities laws through the trading of Beximco shares listed on the capital market.
Among those penalised, Mosfequr Rahman received the highest single penalty of Tk 1.25 billion for his involvement in the price manipulation.
This fine is split into two parts, with Tk 1 billion imposed for one incident of share manipulation and an additional Tk 250 million for another.
Crescent Limited faced the second-highest penalty of Tk 730 million, while Art International Limited was fined Tk 700 million. Other penalties included Tk 41 million for Tradenext International Limited, Tk 300 million for Marjana Rahman, Tk 580 million for Momtazur Rahman, Tk 225 million for Jupiter Business Limited, Tk 151 million for Apollo Trading, and Tk 300 million for Abdur Rauf.
SEC said the manipulative activities took place between Jul 28 and Sept 6, 2021, and again from Jan 2 to Mar 10, 2022.
The regulatory body added that the fined parties were implicated in both instances of share price manipulation.
Beximco Group, which transitioned from a single company into a conglomerate, is headed by Vice Chairman Salman F Rahman, who formerly served as the private sector development affairs advisor to former prime minister Sheikh Hasina.
Hasina fled to India on Aug 5 after stepping down as prime minister in the face of massive public protests and political upheaval.
Subsequently, most government ministers and senior Awami League leaders went into hiding, with reports suggesting some had left the country earlier.
Later, on Aug 13, police reported the arrest of Salman at Dhaka’s Sadarghat while attempting to flee by river.
