BM Desk: In the nation’s economic history, the 2009–10 stock market scandal is still seen as a somber episode. During the catastrophic crash of that era, many investors lost their savings. A high-level commission led by the late banker Khondaker Ibrahim Khaled was established to look into the occurrence. Price increases were systematically manipulated by a number of powerful people and organizations in the stock market, according to the investigative report. Lotus Kamal was identified in the study as a former Planning Minister and significant figure in the economy. He is accused of using a syndicate to influence the stock market in order to embezzle assets valued at around Tk 20,000 crore with his close associates. Even still, there hasn’t been a court settlement on these claims yet.
According to the investigation, at that time Lotus Kamal exerted influence to increase the share prices of various loss-making companies abnormally and misled investors by hiding the income and expenditure information of some companies. It is alleged that the stock scam was ongoing even during his tenure as the Finance Minister.
The name of then MP AHM Mustafa Kamal also came up in connection with a listed company, CMC Kamal Textile. According to the investigation report, despite the company being in loss, its share price increased 16 times, which was due to the announcement of stock dividends, asset revaluation and rights share issue. However, Mustafa Kamal has denied these allegations and said that he only sold the shares received as stock dividends, not the original shares.
The stock market scandal of 2009-10 remains a significant dark period in the nation’s economic narrative. Many investors suffered substantial losses during the catastrophic crash of that era. A high-level committee was established to probe the incident, led by the late banker Khondaker Ibrahim Khaled.
The investigation report indicated that numerous powerful individuals and groups within the stock market engaged in a systematic manipulation of price surges. The report specifically identified former Planning Minister and influential economic figure Lotus Kamal. Allegations suggest that he and his associates misappropriated assets totaling approximately Tk 20,000 crore by manipulating the stock market through a syndicate. However, no legal resolution has been achieved regarding these claims as of yet.
The investigation revealed that during that period, Lotus Kamal leveraged his influence to artificially inflate the share prices of various unprofitable companies and misled investors by concealing the financial information of certain firms. It is claimed that the stock scam persisted even throughout his time as Finance Minister.
Additionally, the name of then MP AHM Mustafa Kamal surfaced in relation to a listed entity, CMC Kamal Textile. The investigation report noted that despite the company incurring losses, its share price surged 16 times, attributed to the declaration of stock dividends, asset revaluation, and rights share issuance. Nevertheless, Mustafa Kamal has refuted these claims, asserting that he only sold the shares he received as stock dividends, not the original shares.
Nevertheless, critics argue that these actions have resulted in losses for investors and are calling for an unbiased investigation and accountability. To rebuild long-term trust in the stock market, it is crucial to conduct an impartial inquiry into previous scandals and take legal action against those at fault.
In spite of the suggestions made in the investigation report, no substantial disciplinary measures have been implemented against any individuals accused of manipulating the stock market. Consequently, numerous economists and market analysts contend that a culture of misconduct has become deeply rooted in the market.
It is thought that the involvement of a powerful group from the past is responsible for the various irregularities and unusual price surges currently observed in the stock market. Experts assert that to guarantee market transparency and effective governance, it is vital to conduct impartial investigations, enforce legal accountability, and maintain the independence of regulatory bodies, including BSEC.
