Securities regulator fines BBS Cables for share manipulation
On August 22, 2017, the BSEC had formed an inquiry committee to mark the unusual price hike and suspicious transactions of the company
The securities regulator has fined the BBS Cables Ltd's shareholder directors, its managing director, his relatives and other persons for market manipulation, insider trading of shares and not disclosing the company's price sensitive information.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision in a meeting led by its Chairman Professor Shibli Rubayat-Ul-Islam on Thursday, said a press release.
On August 22, 2017, the BSEC had formed an inquiry committee to mark the unusual price hike and suspicious transactions of the company.
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According to the report and commission hearing, Khadija Tahera Syria, spouse of the company's chairman, Engr Abu Noman Howlader, its managing director (MD), Abu Neaim Howlader, brother of the MD, Md Farhad Hossain, brother-in-law of the MD, Syed Ferdous Raihan Kirmany, nominated director, Sayedatun Nesa, spouse of the company secretary, and Md Fayjuj Zaman, senior manager of the company, jointly violated the rules of the Securities and Exchange Ordinance, 1969 by the trading of shares.
The commission has decided to fine Khadija Tahera Syria Tk3 crore, Engr Abu Noman Howlader Tk1 crore, Abu Neaim Howlader Tk10 lakh, Md Farhad Hossain Tk30 lakh, and Syed Ferdous Raihan Kirmany Tk5 lakh for violating the law.
Besides, Kobir Ahmed and Associates – Sharmin Ahmed Raina, Ferdaus Ara Begum and Aleya Begum – from Prudential Capital Ltd, CSE TREC, Abdul Quaium and Associates, Md Nazrul Islam and Associates, Syed Anisur Rahman and Hasan Jamil also violated the rules.
Hence, the regulator has decided to fine Kobir Ahmed and Associates, Md Nazrul Islam and Associates and Syed Anisur Rahman Tk25 lakh each, Prudential Capital Ltd Tk55 lakh, Abdul Quaium and Associates Tk1.8 crore, and Hasan Jamil Tk35 lakh.
The commission has also decided to issue warning letters to Sayedatun Nesa and Md Fayjuj Zaman in this regard.
Additionally, the BSEC has fined every shareholder director and managing director, excluding independent directors, Tk10 lakh each for not disclosing price-sensitive information on time.
The company's sponsors and directors jointly own 32.76 percent, institutional investors own 18.58 percent, foreign investors own 1.91 percent and general investors own 46.75 percent share of the company.
The last trading price of each share of the company at the Dhaka Stock Exchange was Tk63.80 on Thursday.
The company was listed on both the stock exchanges in 2017.
