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 Exchange DSE, Bourse on the fourth working day of the week, 8th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
869 crore 59 lakh taka shares were traded on this day. 238 crore 74 lakh less tradings were done in DSE today compared to the previous workday, 7th May , Shares worth Tk 1 thousand 108 crores 34 lakh shares were traded last time, Tuesday.
The benchmark DSEX lose 34.49 points or 5,690 The Shariah-based index DSES dropped 4.60 points or 1,250, and the blue-chip index DS30 decreased by 14.15 points or 2,026.
Of the issues traded, 94 advanced, 253 declined and 50 remained unchanged.
Far East Knitting & Dyeing, JMI Syringe & Medical Devices, Phoenix Finance 1st Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.80, Tk 15.90, Tk 0.70 paisa or 10.00 percent. On this day, the share was last traded at Tk 19.80, Tk 174.90, Tk 7.70 paisa.
Orion Infusion Ltd ranked top loser on the DSE, the share price dropped by Tk 19.90 paisa or 3 percent. On this day, the share was last traded at Tk 644.10 paisa.
DSE topped on trade is Far East Knitting & Dyeing Limited 35 crore 44 lakh takas of company shares have been traded.
A total of 35 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 44 lakh 48 thousand 430 shares of the companies were traded. The financial value of which is 47 crore 87 lakh taka
Dhaka Stock Exchange (DSE), the leading bourse in the country, is actively seeking collaboration with Nasdaq Stockholm AB, a Swedish stock exchange, to bolster its strategic and dynamic growth initiatives.
In a recent meeting with Nasdaq Stockholm President Adam Kostyal on Tuesday (7 May), DSE Chairman Prof Hafiz Muhammad Hasan Babu emphasized the importance of establishing a fruitful and enduring bilateral relationship with the Nordic stock exchange, as per a press statement from DSE.
During their discussion, Prof Hafiz provided an overview of various facets of Bangladesh’s capital market to Adam.
Since 2014, DSE has been leveraging Nasdaq OMX’s X-Treme iNet matching engine and Trapets AB’s InstantWatch market surveillance software, both based in Sweden, to modernize its trading infrastructure.
Additionally, the DSE chairman explored avenues for knowledge exchange, collaboration on product and technology advancement, market monitoring and surveillance enhancement, expansion of financial literacy initiatives, and facilitation of foreign investment.
He expressed confidence that with the cooperation of Nasdaq Stockholm, Bangladesh’s capital market will thrive.
The parties also deliberated on the prospect of formalizing their collaboration through a Memorandum of Understanding (MoU).
Furthermore, Prof Hafiz extended an invitation to Adam Kostyal to visit DSE at his convenience, which was positively received by the Nasdaq Stockholm president.
In another meeting, Prof Hafiz engaged with European Union President for European Markets Roland Chai and Adam Kostyal to explore opportunities for collaboration between DSE and European stock exchanges in advancing Bangladesh’s capital market.
Adam Kostyal provided insights into the role of Nasdaq Stockholm AB’s board of directors, the exchange’s product portfolio, listing and de-listing procedures, market management protocols, and governance practices.
Overall, these discussions underscore DSE’s proactive approach in fostering strategic partnerships to propel the growth of Bangladesh’s capital market.
One of the listed companies, IFIC Bank PLC discloses its financial reports for the first quarter, (January – March 24).
The company’s Consolidated earnings per share (EPS) was Tk 0.22 paisa in Q1 of the current financial year (January – March 24). Consolidated EPS was Tk 0.34(restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s Consolidated net asset value (NAV) per share stood at Tk 19.96.
