BSEC fines 4 investors, 2 firms Tk2cr for manipulating Fine Foods share price
According to the BSEC, Mohammad Shamsul Alam, identified as the main manipulator, has been fined Tk37.50 lakh
The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totalling approximately Tk2 crore on four investors and two institutions for manipulating the share price of Fine Foods Limited, a publicly listed company.
According to the BSEC, Mohammad Shamsul Alam, identified as the main manipulator, has been fined Tk37.50 lakh. His wife, Sajiya Jasmin, has been fined Tk49 lakh while his brother, Mohammad Jahangir Alam, has been fined Tk1 lakh and his sister, Sultana Parvin, has been fined Tk11 lakh.
Two institutions linked to Shamsul were also penalised. AAA Agro Enterprise, where he serves as chief executive officer, has been fined Tk75 lakh. Arbim Techno, where he holds the position of a director, has been fined Tk23 lakh.
The commission made the decision based on an inquiry report from its surveillance department, as recently disclosed by BSEC.
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The share price of the company closed at Tk194.5, increasing by 1.14% on the Dhaka Stock Exchange on Tuesday (28 January).
According to the commission, the manipulators carried out a series of transactions within their network during the period, creating a false impression that the company's shares were more active and in higher demand, even in a declining market.
They artificially influenced buy-and-sell activities during the time by using multiple brokerage firms and several beneficiary owners (BO) accounts. Furthermore, during the period, they held over 10% of the company's shares without declaring it to the stock exchange or the regulator, which is a violation of regulations.
"I have not officially received any letter regarding this matter, so I am not aware of anything yet," Shamsul told TBS on Tuesday.
According to the market insiders, Fine Foods is a widely discussed company in the stock market due to alleged share price manipulation. Despite its poor business performance, the company's share price has skyrocketed. Allegations suggest that the company has been presenting falsified financial statements to manipulate its share price. These include showing reduced expenses, inflated profits, and overstated assets, as highlighted in the auditor's report.
Recently, shares of the low-capital company Fine Foods have been subject to manipulation, driving the share price above Tk200. Reports indicate that the company's management has been directly involved in the manipulation.
They are alleged to have supported the price manipulation through falsified financial statements and other means. Investors and stakeholders have called for an investigation into the matter.
Fine Foods made a profit in the first six months of the current fiscal year 2024-25, almost twice the profit it made in the entire FY24, driven by a 74% growth in revenue.
The firm, which cultivates varieties of fish, reported a 394% growth in its net profit in the first half of the current fiscal year.
According to its unaudited financials, from July to December 2024, the company's net revenue rose to Tk5.63 crore, with net profit reaching Tk2.52 crore. In the first half of FY24, it reported revenue of Tk3.23 crore and profit of Tk53 lakh.
Its revenue for the entire FY24 was Tk7.34 crore and net profit was Tk1.31 crore, according to its annual report.
The earnings per share in the first half of FY25 jumped to Tk1.81, a significant growth from Tk0.38 in the July-December period of FY24.
