Fifteen people, including the company’s managing director, and three companies have been fined for manipulating the shares of BBS Cables, a listed engineering company. The fine was imposed at the 35th commission meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Thursday (August 13th). This information has been known from BSEC sources.
According to BSEC sources, an investigation team was formed in August 2017 in the wake of the unusual rise in the share price of BBS Cables. In their report, the team found evidence of beneficiary transactions against the company’s chairman, engineer Mohammad Badrul Hasan, Managing Director Abu Noman Hawlader and company secretary Nazmul Hasan.
Engineer Mohammad Badrul Hasan buys shares in the name of his wife and Abu Noman Hawladar’s brother and brother-in-law or they invest the shares themselves knowing the secret information of the company from him beforehand. The wife of the company secretary also invested in the shares. Faizus Zaman, a senior manager of the company, also bought the shares on the basis of confidential information. They collectively traded shares through the Securities and Exchange Commission Ordinance, 1989; The Securities and Exchange Commission (Prohibition of Beneficiary Business) Rules, 1995 violated various sections.
On the other hand, the company has violated the law by not disclosing price sensitive information in time, which is the responsibility of every director. After reviewing the report of the investigation team and the hearing of the enforcement department, the commission took this decision today.
Khadija Tahera, wife of BBS Cables Chairman Engineer Mohammad Badrul Hasan, was fined Tk 3 crore, managing director Abu Noman Hawlader Tk 1 crore, his brother Abu Naim Hawlader Tk 10 lakh, his brother-in-law Farhad Hossain Tk 30 lakh and nominated director Syed Ferdous Raihan Kirir. 5 lakh fine. It was decided to warn Syedatun Nesa, wife of company secretary Nazmul Hasan, and Faizus Zaman, senior manager of the company, about the crime.
Chairman of the company Engineer Mohammad Badrul Hasan, Managing Director Engineer Abu Noman Hawlader, Director Engineer Mohammad Ruhul Majid, Engineer Hasan Murshed Chowdhury and Md. Ashraf Ali Khan was fined Rs 10 lakh each.
Meanwhile, Kabir Ahmed & Associates was fined Tk 25 lakh, brokerage house Prudential Capital was fined Tk 55 lakh, Abdul Qayyum & Associates was fined Tk 1 crore 80 lakh. Nazrul Islam and Associates were fined Tk 25 lakh, Syed Anisur Rahman Tk 25 lakh and Hasan Jamil Tk 35 lakh.