News: Stock market regulator fines individuals and companies for violating securities rules and manipulating stock prices

The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totaling Tk 8.30 million on several individuals and entities for violating securities rules and manipulating stock prices. The fines were handed out following investigations conducted by the Dhaka Stock Exchange (DSE).

Rabeya Khatun, the chairman of Mithun Knitting & Dyeing (now known as Toyo Knitex), along with directors Md Atiqul Haque, Md Mahbub-Ul Haque, and Md Rafiqul Haque, were fined Tk 1.20 million for failing to submit audited financial reports for the fiscal year 2022. The company’s failure to provide financial statements, along with other misconducts such as the absence of a functional website and the directors’ failure to hold the minimum required shares, led to the regulatory action.

Additionally, four individual investors were fined Tk 6.5 million in total for violating rules in trading shares of Janata Insurance. The investors, including Md Saif Ullah, AG Mahmud, SM Motaharul Janan, and Hasina Akther, engaged in transactions that created a false impression about the demand for the stock, without following the necessary disclosure rules.

Furthermore, brokerage firms Gateway Equity Resources and Hillcity Securities were also penalized for various violations, including bank data manipulation and making cash payments to clients instead of issuing account payee cheques.

The BSEC has given the accused parties 30 working days to pay the fines, with additional penalties of Tk 10,000 per day for any delays beyond the deadline. This enforcement action underscores the regulator’s commitment to maintaining transparency and integrity in the securities market.

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