Stocks
Police Detained 3 on Ponzi Scheme Allegedly Linked to Investment Organization
Several organizations have been found involved in fraudulent activities in the stock market, targeting investors by falsely listing companies and engaging in fraudulent practices. They instill fear in various companies by falsely listing them through investor organizations, and subsequently, through legal notices, threaten to retaliate against companies planning initial public offerings (IPOs). The leaders of these organizations then demand bribes. The Dhaka Metropolitan Police’s (DMP) investigation has uncovered such information.
Friday night saw raids in multiple areas of the capital based on intelligence, leading to the arrest of three members of a cartel involved in market manipulation and spreading rumors. Additional Commissioner (Detective) of Police Mohammad Harun-or-Rashid confirmed this information at a press conference held on Saturday (April 27) afternoon.
The share market, where investors are targeted by various organizations, includes the Bangladesh Investors’ Unity Council, the Bangladesh Investors’ National Foundation, the ICB Investor Foundation, the Chittagong Investors’ Forum, and others. Allegations have surfaced that these organizations, through a few individuals, engage in fraud under the guise of ordinary investors, despite having no affiliation with them.
It has been revealed that various companies are targeted for extortion by instilling fear through investor organizations. Among them, if allegations are made against the chairman of BSEC, their IPO will be canceled, they will be defamed, and the media will publish negative news about them, creating fear. Additionally, a legal notice team has been formed. Initial legal notices are sent to companies planning IPOs, followed by demands for bribes threatening to tarnish the names of these organizations.
The arrested individuals are Md. Amir Hossain alias Nurnurani (37), Nurul Haque Harun (52), and Abdul Kaiyum (39).
Chief of DB Harun-or Rashid said in a press conference that three members of a cartel involved in market manipulation and spreading rumors have been arrested based on intelligence obtained through online and social media platforms. They listed various shares in the stock market and engaged in fraudulent activities. Their aim was to destabilize the country’s stock market through various means. Everyone needs to be vigilant about these organizations. If anyone engages in extortion, they will face legal consequences, he advised.
He said, “The stock market is a sensitive place, intricately linked with the country’s economy. Many ordinary investors invest their savings here. There is a high risk of suffering losses here. A selfish cartel has been trying for a long time to destroy the stock market and the country’s economy. They are spreading various false, misleading, and intimidating information through secret groups on Facebook, WhatsApp, and Telegram to harass ordinary investors for their own interests. They are creating volatile situations under the guise of protests using ordinary investors. Bangladesh Securities and Exchange Commission (BSEC) has filed a case at Ramna Model Police Station against various important figures, including the Chairman of the Commission, for providing false and misleading information through Facebook, WhatsApp, and Telegram groups, causing financial losses to ordinary investors.”
The arrested individuals spread false and misleading information in various Facebook, WhatsApp, and Telegram groups to increase the price of various shares and sell them at high prices to ordinary investors and use secret WhatsApp/Telegram groups for this purpose. Members of these groups have to pay a specified fee to join. In case of profit, they do not share the profit.
According to the Bangladesh Securities and Exchange Commission Act, it is illegal to provide information about any share price. Amir Hossain alias Nur Nurani (pretending to be Nurul Haque Harun) has 11 cases under the Explosive Substances Act and Special Powers Act. Nurul Haque Harun, a member of the Bangladesh Investors’ Unity Council, colluded with various members of the organization to extort companies.
Additionally, Abdul Kaiyum is associated with Royal Capital Brokerage House. He provides information about various shares in WhatsApp and Telegram groups.
The arrested individuals spread false and misleading information to increase the price of various shares and sell them at high prices to ordinary investors, using Facebook, WhatsApp, and Telegram groups. They create volatile situations using ordinary investors under the guise of protests. They list various companies in the stock market and extort them for various issues. They start online propaganda if they don’t get extortion money. They even attack company offices.
The arrested individuals spread false and misleading information about various shares in the stock market to increase their prices and sell them at high prices to ordinary investors. They use secret WhatsApp/Telegram groups for this purpose. Members of these groups have to pay a specified fee to join. In case of profit, they do not share the profit.
The Dhaka Metropolitan Police’s Cyber and Special Crime Division has always been working to protect the interests of ordinary investors. Regular monitoring and cyber patrols are being conducted online. Campaigns are ongoing to prevent anyone from benefiting from creating volatile situations in the stock market, causing fear to ordinary investors.
Dhaka Stock Market DSE, Bourse on the last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
