Infamous stock manipulators absent, but minions remain: BSEC investigation committee

Though investigations into the stock market scandals of 1996 and 2010 had revealed significant issues, no effective measures were taken, and the culprits were never punished, said Yawar Sayeed, a member of the Bangladesh Securities and Exchange Commission's (BSEC) inquiry and investigation committee.

"During those times, influential figures or manipulators dominated the capital market, and although their influence has waned, their followers still remain active," he said, adding that the committee's work might not please those followers.

"Judge us by the results of our work. Within 11 working days, BSEC has reached a point where effective measures are being implemented," Yawar Sayeed further said while speaking at a press conference yesterday at the BSEC office.

These remarks fall in line with BSEC's recent commitment to address the irregularities and corruption that have plagued the stock market for years. 

Elaborating his views, Sayeed referred to a probe report on stock market manipulation prepared by late Khondkar Ibrahim Khaled, prominent economist and former deputy governor of Bangladesh Bank, which clearly stated that two individuals should be declared persona non-grata in the capital market. 

"However, no action was taken, and these individuals continued to exert control over the stock market," he added.

"That report is no longer available to us, but we will proceed with our work. If we fail, we will step aside. Please don't hinder our efforts," he further said.

Sayeed also mentioned the stagnation of the mutual fund sector, noting that despite the inauguration of the first mutual fund on 29 August 1999, the sector has not progressed significantly in the last 25 years. "In some areas, it has even regressed," he added.

"Journalists have extensively reported on irregularities and corruption in the stock market over the years, and the committee will now investigate based on these reports," he said. 

"There is no political pressure on us now. No MPs or ministers will dictate us, instruct us to not name them. We will work impartially against wrongdoing. Even after we're gone, people should say that a few individuals made a difference for the market," he asserted.

At the conference, BSEC Chairman Khondoker Rashed Maqsood reiterated the commission's commitment to transparency and impartiality. 

He clarified that the commission had formed an investigation committee to examine 12 past irregularities, and they expect concrete evidence from the committee, which must be "legally executable."

He also assured that the committee will work independently and that no incomplete work will be rushed.

In response to concerns raised about the impartiality of the investigation committee, given that two of its five members are linked to market intermediary firms, the BSEC chairman stated, "Wherever we go, there may always be some connection between individuals and other entities. 

"However, if our investigation committee finds any conflict of interest involving a member during the investigation, that member will recuse themselves from that specific matter. The remaining members will continue the investigation. This is a standard procedure followed worldwide."

"The stock market will become increasingly important in the future. These decisions have been made within just 11 days of the commission's formation. We will continue to undertake many more initiatives, and this is a clear message that the stock market will be established as a trusted place for all," he added.

The head of the investigation committee, Zia Uddin Ahmed, said, "We will uncover instances of irregularities and corruption by reviewing various reports published by journalists."

BSEC executive director and investigation committee member, Md Anwarul Islam, vowed to give their best effort, emphasising the uniqueness of this opportunity.

Another member of the investigation committee, Md. Shafiqur Rahman, said, "The student movement has created an opportunity for us through a mass uprising, and we want to make the most of this opportunity to carry out our work."