The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totaling Tk 12.46 million on 10 individuals and two companies for manipulating the shares of listed company Fine Foods Limited.

The penalties were imposed after a BSEC investigation found evidence of collusive trading and unlawful profit-making in violation of securities laws. The decision was taken by the commission led by former BSEC Chairman Khondoker Rashed Maqsood before its resignation.

BSEC Executive Director and spokesperson Abul Kalam confirmed the development, saying the regulator had decided to penalize several individuals and institutions involved in the manipulation of Fine Foods shares.

According to sources, Ambia Enterprise was fined Tk 200,000, Md. Shafikur Rahman Tk 450,000, Mohammad Shamsul Alam the highest amount Tk 5.7 million, RBM Teco Limited Tk 935,000, Bikash Chandra Sarkar Tk 675,000, and Mohammad Alam Mintu Shah Tk 2.35 million.

Additionally, Sultana Parvin was fined Tk 455,000, Amina Begum Tk 275,000, Dipika Saha Tk 540,000, Md. Mamun Tk 200,000, Mohammad Latif Abdul Tk 480,000, and Farhana Akter Tk 200,000. The total fines amounted to Tk 12.46 million.

BSEC’s investigation found that Fine Foods shares were manipulated between October and December 2024. The company’s share price rose from Tk 150.60 on October 28, 2024, to Tk 219.70 on December 24, 2024 an increase of Tk 69.10, or 45.88 percent, in less than two months.

An analysis of trading activities during the period revealed evidence of market manipulation involving Ambia Enterprise and associated parties. Consequently, the regulator imposed penalties for violating Sections 17(e)(v) and 17(e)(2) of the Securities and Exchange Ordinance, 1969.

This is not the first time Fine Foods shares have come under scrutiny. Following evidence of manipulation between March and June 2023, BSEC had previously fined Mohammad Shamsul Alam Tk 3.75 million, RBM Teco Limited Tk 2.3 million, and Sultana Parvin Tk 1.1 million.

The regulator said it is pursuing a “zero-tolerance” policy to ensure transparency and discipline in the capital market, adding that its Enforcement Department will take further necessary action.

Market insiders believe such stringent measures against share manipulation will increase accountability in the stock market and help restore investor confidence.

Fine Foods was listed on the stock exchange in 2002. The company has a paid-up capital of Tk 139.74 million and a total of 13.97 million shares. Sponsor-directors hold 13.92 percent of the shares, institutional investors own 19.99 percent, and general investors hold the remaining 66.09 percent.