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BSEC fines 75 individuals, institutions Tk26cr in FY24 for violating laws, manipulating shares




The Bangladesh Securities and Exchange Commission (BSEC), the country’s stock market regulator, fined 75 individual investors and institutions (listed companies and intermediaries) in the immediate past fiscal year 2023-24 on charges of violating securities laws and manipulating shares.

These actions, including imposing fines amounting to Tk26.12 crore, aimed to strengthen good governance in the market, according to a document of the BSEC.

The documents attached with some recent steps including fines and other capital market development issues were sent to the Financial Institutions Division last month.

In the documents, the BSEC said enforcement activities have been intensified to curb various irregularities in the capital market.

Some punitive measures were taken against 75 individuals and institutions, resulting in fines totalling Tk26.12 crore from July 2023 to 12 June 2024.

Of the amount, Tk7.44 crore was received from 51 individuals and institutions, and the remaining fines are in the process of being collected. However, many appealed against the regulator’s verdicts.

In the order, after imposing fines, the BSEC issued a directive to deposit the fines within 30 working days. So, with the data of BSEC, some individuals and institutions did not abide by the order.

But market insiders aware of the steps say the commission fined the manipulators much less than they earned from the share manipulation.

So, for the development and to ensure good governance in the market, regulators should take punitive actions against them as they did not further engage in share manipulation, they say.

The regulator should take proper actions, if any issuer violates securities laws, they add.

The fines

The commission fines any investors or issuer companies and intermediaries when they break securities rules, laws and regulations.

According to its enforcement actions published on its website, during FY24, the commission fined several investors for manipulating share prices and issuer companies over non-compliance to submit financials on time.

In March this year, the BSEC fined Md Abul Khayer and his associates Tk20 lakh on a charge of violating securities laws in trading shares of Genex Infosys.

In April, Saif Ullah, a stock market investor, was fined Tk30 lakh, and AG Mahmud Tk25 lakh on a charge of manipulating shares of Index Agro Industries.

The commission fined Tk20 lakh AG Mahmud, and Motaharul Janan in May and Tk40 lakh for Saif Ullah on a charge of manipulating shares of Janata Insurance Company while Hasina Akhter was fined Tk5 lakh for the same reasons.

Chowdhury Khaled Saifullah, then managing director of Grameen Capital Management, was fined Tk1 crore and banned for three years from the stock market, and Azad Hossain Patwary was fined Tk35 lakh.

In December 2023, the commission fined Tk2 lakh to the managing director of Agrani Insurance Company Ltd on a charge of violation of securities laws while Holy Securities was fined Tk2 lakh and Nasir Sikder Tk1 lakh.

In September 2023, the commission fined Tk1 crore for Jamil Ahmed Chowdhury, a director of Banco Securities, and Mohammad Shoeb, director of Appollo Ispat Complex Limited Tk1 lakh for failure to submit financial information on time.

Kabir Ahmed, director of Meghna Condensed Milk Industries, was fined Tk1 crore on a charge of securities rules violation, and Tk2 lakh fine was imposed on Asif Islam Khan, CEO and Md Kabirul Islam, head of finance and accounts, Md Rubel Hossain Sajib, IT in-charge of Dhanmondi Securities.

Also, the commission fined Shifat Mahamood Abdullah, KTS Fashions, Shahnara Akhter Chowdhury and Md Abul Kashem Bhyuiyan for violating laws in trading Anlima Yarn Dyeing Limited Tk30 lakh, Tk10 lakh and Tk5 and Tk20 lakh respectively.

In August 2023, the commission fined Tk35 lakh to Mohammad Abdul Hai for violating laws in trading JMI Syringes and Medical Devices shares.

Intech Ltd’s managing director was fined Tk1 lakh owing to failure to submit quarterly financials for March 2021.

Also, Md Rafiqul Haque, managing director of Toyo Knitex (CEPZ) was fined Tk1 lakh for the failure to submit financials till June 2020, and Md Atiqul Haque, managing director of Toyo Spinning Mills, Tk1 lakh for the same reasons.

In January 2024, the commission fined Kattali Textile Chairman Nasreen Hoque, and Shurid Industries Tk2 lakh.

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Dhaka Bourse on Green Despite Sluggish Indices



dse dhaka bourse index turnover

Dhaka Stock Market DSE, Bourse on the second working day of the week, 15th July, ended with a gaining performance in Indices and Turnover from the previous working session. This information is known from DSE sources.

662 crore 24 lakh taka shares were traded on this day. 39 crore 98 lakh more tradings were done in DSE today compared to the previous workday, July 12th, Shares worth Tk 622 crores 25 lakh shares were traded last time, Sunday.

The benchmark DSEX increased 2.17 points or 5,484 The Shariah-based index DSES added 0.72 points or 1,203 and the blue-chip index DS30 gained by 7.17 points or 1,937.

Of the issues traded, 140 advanced, 191 declined and 66 remained unchanged.

Information Services Netowrk Limited ranked top gainer on DSE, the share price increased by Tk 4.50 paisa or 9.93 percent. On this day, the share was last traded at Tk 49.80 paisa.

Linde Bangladsh Limited ranked top loser on the DSE, the share price dropped by Tk 33.40 paisa or 3.00 percent. On this day, the share was last traded at Tk 1,080.10 paisa.

DSE topped on trade is Orion Infusion Limited 57 crore 23 lakh takas of company shares have been traded.

A total of 40 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 53 lakh 88 thousand 588 shares of the companies were traded. The financial value of which is 51 crore 12 lakh taka

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Stocks mixed, dollar rises as traders weigh Trump shooting




asian stock market global

Asian markets were mixed Monday as investors weigh the impact of the assassination attempt on Donald Trump with data suggesting it has boosted his chances of being re-elected president.

Eyes are also on a key meeting of China’s top leadership in Beijing, with hopes for measures to boost the world’s number two economy, which grew less than expected in the second quarter.

Investors struggled to extend the rally enjoyed on Wall Street, where all three main indexes ended on a positive note despite a forecast-topping read on US wholesale prices.

The figures were not enough to overshadow Thursday’s news that the consumer price index had slowed more than expected in June, which ramped up bets on a Federal Reserve interest rate cut in September.

That came after central bank chief Jerome Powell told lawmakers that inflation did not need to come in at decision-makers’ two percent target for them to begin lowering borrowing costs.

However, investors are keeping a close eye on developments in the United States after Trump was hit with a bullet on Saturday at a rally ahead of the Republican convention this week.

While the odds of him beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.

Observers said a Trump victory could see lower corporate taxes — a boost for companies’ bottom lines — but also an increase in tensions with China with fresh tariffs possible.

Still, Katrina Ell at Moody’s Analytics said: “The assassination attempt might lead to a temporary boost in the polls for Trump, but a lot can change before November.

“Financial markets are expected to soon refocus on the Federal Reserve and the growing likelihood of a rate cut in September.”

The dollar rose Monday, having softened last week owing to the prospect of lower rates, while equity markets were mixed.

Hong Kong, Shanghai, Seoul, Taipei and Jakarta dropped, while Sydney, Singapore, Manila and Wellington rose.

Official data showed the Chinese economy expanded just 4.7 percent in the second quarter, well below the 5.1 percent forecast in a survey by Bloomberg.

Separate data showed retail sales slowed sharply in June as the country’s army of consumers remain cautious.

The readings highlight the tough work leaders face as they grapple with a real estate debt crisis, weakening consumption, an ageing population and trade tensions with Western rivals.

President Xi Jinping and other top leaders are gathered in Beijing to hammer out plans to kickstart growth, though analysts warned there was unlikely to be any major announcement for the short-term.

“A Trump victory would be damaging for China’s economy given manufacturing and exports are powering the recovery,” Moody’s Ell added.

“Trump has indicated a number of significant trade barriers would be imposed on China under his leadership.”

– Key figures around 0230 GMT –

Hong Kong – Hang Seng Index: DOWN 0.9 percent at 18,123.67

Shanghai – Composite: DOWN 0.2 percent at 2,965.55

Tokyo – Nikkei 225: Closed for a holiday

Dollar/yen: UP at 158.04 yen from 157.88 yen on Friday

Euro/dollar: DOWN at $1.0889 from $1.0906

Pound/dollar: DOWN at $1.2966 from $1.2989

Euro/pound: DOWN at 83.95 pence from 83.97 pence

West Texas Intermediate: DOWN 0.5 percent at $81.80 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $84.64 per barrel

New York – Dow: UP 0.6 percent at 40,000.90 (close)

London – FTSE 100: UP 0.4 percent at 8,252.91 (close)

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SK Trims’ Bank Accounts Frozen Amid Corruption Probe



The Bangladesh Financial Intelligence Unit (BFIU) has frozen the bank accounts of SK Trims and Industries, a publicly traded company allegedly owned by the family of former National Board of Revenue (NBR) official Matiur Rahman. This action follows court orders and a recommendation from the Anti-Corruption Commission (ACC), as disclosed today on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) websites.

Key Figures and Investigation
Media reports indicate that MA Kaium Howlader and Md Nurul Huda, brothers of Matiur Rahman, hold significant positions in SK Trims, serving as Managing Director and Sponsor Director, respectively. The ACC is currently probing Matiur Rahman’s assets on allegations of amassing illegal wealth.

On July 11, a Dhaka court mandated the freezing of 116 bank accounts and 23 beneficiary owner (BO) accounts, along with the seizure of multiple properties belonging to Matiur Rahman and his family.

Company Disclosure and Response
In a recent disclosure, SK Trims confirmed that the Metropolitan Sessions Judge Court and the BFIU had frozen all their bank accounts based on the ACC’s recommendation. Efforts to reach Md Riaz Haider, the company secretary, and Md Nazmul Hossain, the Chief Financial Officer (CFO), for comments were unsuccessful.

According to SK Trims’ annual report for 2022-23, the company maintains over a dozen bank accounts across various banks, including fixed deposit receipts (FDRs), loans, and other accounts critical for its business operations.

Stock Market Performance and Financial Impact
SK Trims was listed on the stock exchange in 2018, raising Tk30 crore through an initial public offering (IPO) to expand its business. The company’s share price has fluctuated significantly following allegations against Matiur Rahman. From Tk27.6 per share on June 20, it fell to Tk24.4 on July 2, then briefly rose to Tk27 on July 9, before declining again, closing at Tk24.8 on the DSE yesterday.

Business Operations and Investments
SK Trims specializes in manufacturing various products for the export-oriented garment industry, including sewing thread, elastic, poly, cartons, photo cards, backboards, barcodes, hang tags, tissue paper, and gum tape.

The company has invested Tk17 crore in seven companies as of June 30, 2023. Among these, Dominage Steel Building Systems, Mamun Agro Products, Acme Pesticides, and Asiatic Laboratories are listed on the bourses, while Anik Trims, B Brothers, and Banbiz (Pvt) remain non-listed. It is unclear whether SK Trims has sold or still holds shares from these investments.

Revenue and Profit Growth
SK Trims reported a 40% increase in revenue to Tk92 crore for the first nine months of the 2023-24 fiscal year, with net profit soaring by 86% to Tk8.81 crore. These figures surpassed the company’s annual revenue and profit of Tk88.75 crore and Tk7.97 crore, respectively, for the 2022-23 fiscal year. The company paid a 3% cash dividend to its shareholders in FY23 and its shares are currently trading in the B category.

As of June 30, sponsor-directors held 31.23%, institutional investors 28.86%, and the general public 39.91% of the company’s shares.

Industry Concerns
Ziaur Rahman, General Secretary of the Benapole Landport Importers and Exporters Association, expressed concerns over the significant losses traders face with perishable food products due to halted trade services. “Since the goods trucks cannot enter after the evening, the trade deficit will increase,” he noted.

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