The Bangladesh Securities and Exchange Commission (BSEC) has found evidence of share price manipulation involving listed company Rahima Food Corporation Ltd., following an investigation into unusual trading activity.

According to the regulator, the probe revealed that a single investor used multiple Beneficiary Owner (BO) accounts to buy and sell shares among accounts under his own control. While the transactions did not result in any actual change in ownership, they created artificial trading activity and false market demand.

The investigation, conducted by a Dhaka Stock Exchange (DSE) team under BSEC’s directive, reviewed trading in Rahima Food shares between June 15 and August 27, 2025. During the period, the company’s share price surged from Tk 68.90 to Tk 168.90, marking an increase of Tk 100, or 145.14%, in just over two months.

The investigation report identified Md. Delowar Hossain as the key investor involved. He allegedly traded through three separate BO accounts maintained with NRBC Bank Securities, Sheltech Brokerage, and IIDFC Securities. The report noted that his name appeared as “Md. Delowar Hossain” in some accounts and “Dr. Md. Delowar Hossain” in others.

During the review period, Delowar purchased 361,583 shares and sold 287,183 shares, accounting for approximately 2.47% of the company’s total trading volume. He was the largest buyer and the second-largest seller of Rahima Food shares during the period.

The report highlighted a transaction on July 29, 2025, at 10:10 a.m., when Delowar transferred 2,086 shares between two BO accounts under his control through a cross trade at Tk 134 per share.

BSEC said the buyer and seller were effectively the same individual, meaning the beneficial ownership of the shares remained unchanged. Such transactions create a misleading impression of market activity and demand, which is prohibited under Section 17(e)(3) of the Securities and Exchange Ordinance, 1969.

The investigation also reviewed trading by several other investors, including Abdul Mobin, Abdul Hafiz Joardar Tuhin, Tasnia Tahsin, Krishna Das, Bijon Pal, Imrani, Nazmul Hossain, Alamgir Kabir, Satyajit Majumdar, and A.K.M. Golam Bohlul. However, investigators found no evidence of coordinated trading or links among them.

According to the report, Abdul Mobin bought 263,021 shares and sold 225,402, while Abdul Hafiz Joardar Tuhin purchased 186,470 shares and sold 173,470. Tasnia Tahsin bought and sold 176,704 shares during the period.

With preliminary evidence of securities law violations established, the matter has been referred to BSEC’s Enforcement Department for further action. If the allegations are proven, the individuals or entities involved could face fines, trading restrictions, and other penalties under the securities laws.