The Bangladesh Securities and Exchange Commission (BSEC) has launched an investigation into Orion Group over suspected share market manipulation, money laundering and possible misuse of undisclosed price-sensitive information in transactions involving the group’s listed companies.
The move follows an intelligence report from the Bangladesh Financial Intelligence Unit (BFIU), prompting the securities regulator to examine the group’s bank accounts, beneficiary owner (BO) accounts and related stock market transactions.
According to a BSEC order issued on Thursday (November 12), a three-member investigation committee has been formed to examine the transactions. The committee has been instructed to submit its findings to the commission within 60 working days.
The investigation will focus particularly on share transactions involving Orion Pharma PLC and Orion Power Rupsha Limited, including how the group’s funds were used to trade shares of its own companies, who ultimately benefited from the transactions and whether any irregularities occurred.
The investigation committee will examine fund transfers from bank accounts of Orion Group-related entities to IDLC Securities Limited, United Securities Limited and BRAC EPL Stock Brokerage Limited. It will also identify the BO accounts receiving the funds and determine whether the money was used to purchase shares of the group’s own listed companies.
A key area of the investigation is whether the transactions were designed to artificially influence share prices or trading volumes. The regulator will also examine whether any undisclosed price-sensitive information was used in the transactions, potentially involving insider trading.
In addition, the investigation will trace the sources and destinations of funds, the purposes behind the transactions and the identities of their ultimate beneficiaries to assess possible money laundering risks.
Orion Group-related BO accounts had previously faced regulatory action. On August 5, 2024, following the fall of the Awami League government, the BSEC commission led by Khandaker Rashed Maksud froze BO accounts associated with the group.
The latest investigation, based on the BFIU intelligence report, will place renewed scrutiny on the group’s previous share transactions, sources of funds and actual beneficial ownership. However, it remains unclear whether all previously frozen accounts have been included in the current investigation.
The regulator will also assess the compliance responsibilities of the three brokerage firms involved in the transactions. In particular, the committee will examine whether they properly followed Know Your Customer (KYC) requirements, verified sources of funds, conducted Enhanced Due Diligence (EDD) where necessary and submitted Suspicious Transaction Reports (STRs) in accordance with applicable regulations.
The investigation will also evaluate the effectiveness of the brokerage firms’ monitoring systems and their compliance with anti-money laundering requirements.
The committee is headed by BSEC Director Mawla Moazzem. Its other members are Assistant Director Muhammad Salehur Rahman Bhuiyan and Amit Kumar Saha.
The investigation has been ordered under Section 21 of the Securities and Exchange Ordinance, 1969, and Section 17 of the Bangladesh Securities and Exchange Commission Act, 1993, along with other relevant legal provisions.
