The Bangladesh Securities and Exchange Commission (BSEC) has fined 12 individuals a total of Tk 3.55 crore for their involvement in manipulating the share price of Safco Spinning Mills Limited, a listed company in the textile sector.

According to BSEC findings, the manipulation took place between May 2 and June 20, 2021, during which the accused colluded to artificially inflate the company’s share price through series trading. Over a span of just one month and 18 days, the share price surged by 215%, rising from Tk 10 to Tk 31.50—without any corresponding improvement in the company’s financial performance.

Following a prolonged investigation, the capital market regulator identified the manipulators and imposed financial penalties under the Securities and Exchange Ordinance, 1969.

Breakdown of Fines Imposed:

• Md. Sajib Hossain – Tk 1.34 crore

• Md. Suleman – Tk 6.6 lakh

• Md. Sharif – Tk 3.3 lakh

• Taslima Begum & Md. Sajib Hossain (joint) – Tk 2.7 lakh

• Md. Abdul Quddus Amin – Tk 27 lakh

• AKM Khalilur Rahman – Tk 24 lakh

• Nurunnesa Saki – Tk 19 lakh

• Md. Belal Hossain – Tk 9 lakh

• Arifa Begum Lucky – Tk 8 lakh

• Tarannum Shafi – Tk 4.5 lakh

• Mahmuda Akhter – Tk 2 lakh

• Kazi Mohiuddin Ahmed – Tk 2 lakh

The BSEC concluded that the accused violated Sections 17(E)(2) and 17(E)(5) of the Securities Ordinance, along with other provisions under the BSEC (Acquisition and Takeover) Rules, 2028. The Commission has ordered the fines to be paid via bank draft or pay order within 30 days, failing which further legal action will be pursued.

The crackdown comes under the leadership of newly appointed BSEC Chairman Khandaker Rashed Maqsood, marking a more aggressive stance on market irregularities. The current commission has pledged to take firm action against manipulation and restore investor confidence in the capital market.

Safco Spinning Mills, listed in 2000, is categorized under the ‘Z’ category, with a paid-up capital of Tk 299.82 million. The company last declared a 2% cash dividend for the financial year ending June 30, 2022, and has since remained inactive in dividend distribution.

As of July 31, 2025, sponsor-directors hold 30% of the company’s shares, institutional investors hold 7.08%, and general investors 62.92%. The last recorded share price of Safco Spinning was Tk 16.20 on September 8, 2025.