The Bangladesh Securities and Exchange Commission (BSEC) has fined Md. Abul Khair Hiru, Deputy Registrar of the Department of Cooperatives, his wife Kazi Sadia Hasan and their business entity DIT Cooperative a total of Tk 190 million for their involvement in share manipulation of Asia Insurance Limited, an insurance company listed on the stock market.
According to BSEC sources, the share price of Asia Insurance was manipulated from October 22 to November 30, 2020. In the company’s share manipulation, Hiru, his wife and business entity opened multiple Beneficial Owners (BO) accounts and took profits by abnormally increasing the price through series trading.
There had been rumors in the stock market for several years that Hiru and his associates had manipulated the shares of Asia Insurance. Finally, the BSEC, subject to investigation, identified and punished those involved in the company’s share manipulation.
Md. Abul Khair Hiru has been fined Tk 4 crore under the powers of Section 17(E)(5) of the Securities and Exchange Ordinance, 1969 for share manipulation of Asia Insurance. DIT Co-operative has been fined Tk 5 crore under the powers of Section 17(E)(2) and Section 17(E)(5) of the Securities and Exchange Ordinance, 1969. Kazi Sadia Hasan has been fined Tk 10 crore under the powers of Section 17(E)(2), Section 17(E)(3) and Section 17(E)(5) of the Securities and Exchange Ordinance, 1969. Accordingly, a total fine of Tk 19 crore has been imposed on the accused.
Abul Khair Hiru, his wife Kazi Sadia Hasan and the business entity DIT Cooperative conspired to carry out a series of transactions in Asia Insurance shares. Those involved in the manipulation increased the price of Asia Insurance shares between October 22 and November 30, 2020. During this period, the company’s share price was increased from Tk 60 to Tk 114. During the period in question, the company’s share price increased by Tk 54 or 90.17 percent.
Abul Khair Hiru, an officer of the 31st BCS (Cooperative) cadre, was not very well known to investors ten years ago. However, in the last five years, he and his associates have become known as discussed and criticized investors in the stock market, as if they had appeared with Aladdin’s lamp.
Recently, Abul Khair Hiru was fined Tk 5.6 crore, his company DIT Cooperative Tk 2.88 crore, and his wife Kazi Sadia Hasan Tk 2.87 crore in the share manipulation case of Sonali Paper and Board Mills and NRBC Bank.
In addition, Hiru’s business partner, world-renowned cricketer Shakib Al Hasan, was also fined Tk 2.26 crore by the Bangladesh Securities and Exchange Commission (BSEC) for the share manipulation case of Sonali Paper and Board Mills.
