The Bangladesh Securities and Exchange Commission (BSEC) has fined FA Trading Corporation Tk100,000 for allegedly manipulating the share price of SME-listed Star Adhesives Ltd.

The penalty was imposed through a recent order signed by BSEC Commissioner Nahid Mahtab. BSEC Director and spokesperson Md. Abul Kalam confirmed the action.

A joint investigation by the BSEC and the Dhaka Stock Exchange (DSE) found unusual trading activity in Star Adhesives shares between December 29, 2024, and February 2, 2025. During the period, the company’s share price surged 43.33% in just over a month.

According to the investigation, FA Trading Corporation, through Jamuna Bank Capital Management Ltd., purchased 1,018,915 shares, accounting for 40.09% of the total shares traded during the period, while selling only 50,000 shares.

The regulator said the heavy buying created artificial demand and influenced the market price, resulting in an unrealized gain of approximately Tk12.03 million for the firm. BSEC noted that such trading could create a misleading market environment and influence ordinary investors.

The investigation also found that on January 20, 2025, FA Trading executed 54 consecutive trades to buy 39,863 shares within just two minutes, pushing the share price from Tk53.60 to Tk53.90. The firm accounted for 31.38% of the day’s total trading volume.

In another instance on January 23, FA Trading executed 16 of the 20 trades completed between 10:27 a.m. and 10:35 a.m., which the regulator cited as further evidence of attempts to influence the stock price.

BSEC said the activities violated Section 17(e)(v) of the Securities and Exchange Ordinance, 1969.

The commission had issued a show-cause notice to the company on September 15, 2025, and held a hearing on September 29. In its written response, proprietor Farid Ahmed claimed the investments were made using margin loans from Jamuna Bank Capital based on RSI and MACD technical indicators with the intention of earning long-term dividends, denying any attempt to manipulate the market.

However, BSEC rejected the explanation and imposed the fine under Section 22 of the Securities and Exchange Ordinance, 1969, citing the need to protect market discipline, transparency, and investors’ interests.