The Bangladesh Securities and Exchange Commission (BSEC) has launched an investigation into suspicious transactions in the bank and brokerage accounts of Azad Hossain Patwary and his associated persons following a Tk 2 crore penalty for alleged stock market manipulation.

The investigation will examine the sources of funds deposited into their accounts, the channels through which the money was transferred and how it was used in the capital market. Possible involvement in insider trading and share price manipulation will also be scrutinised.

The initiative follows intelligence information from the Bangladesh Financial Intelligence Unit (BFIU). The BSEC has reconstituted a three-member investigation committee and instructed it to submit its report within 60 working days.

The committee comprises BSEC Additional Director Mohammad Rakibur Rahman, Joint Director Md Shahnowaz and Assistant Director Md Matiur Rahman.

According to the BSEC order, the BFIU identified suspicious transactions in accounts maintained by Patwary and his associated persons with different scheduled banks, stock dealers and brokerage firms.

The investigation will review fund transfers from bank accounts to brokerage houses, trace the sources and movement of the money, and examine its use in share transactions.

The committee will also investigate whether the individuals traded shares using undisclosed price-sensitive information, manipulated prices through planned transactions or created artificial market activity.

Earlier, the BSEC fined Azad Hossain Patwary Tk 2 crore over alleged manipulation of shares of Khan Brothers PP Woven Bag Industries. The regulator found evidence of trading through multiple beneficiary owner (BO) accounts, aggressive purchases at higher prices and attempts to create artificial market activity.