The Bangladesh Securities and Exchange Commission (BSEC) has launched an investigation into allegations of share manipulation, misuse of insider information and the use of benami beneficiary owner (BO) accounts involving two senior figures of United Group.

The investigation will examine the roles of Hasan Mahmud Raja, chief adviser to United Group, and Moinuddin Hasan Rashid, chairman of United Enterprise and Company Limited (UECL).

The regulator is investigating suspected irregularities in share transactions involving listed companies, including United Power Generation and Distribution Company Ltd. (UPGDCL) and Khulna Power Company Ltd. (KPCL), as well as other companies.

BSEC Executive Director and spokesperson Md. Abul Kalam confirmed the development.

The commission’s Market Intelligence and Investigation Division has issued a revised investigation order, directing a three-member team to submit its report within 60 working days. The team comprises BSEC Director Mohammad Shamsur Rahman, Deputy Director Ziaur Rahman and Assistant Director Ali Ahsan.

The investigation follows complaints filed by MM Habibullah and Nuruzzaman Jinnah. Investigators will examine whether shares were traded through BO accounts opened in other people’s names to conceal the identities of the actual owners.

The team will review BO accounts, share transaction records and bank accounts belonging to the complainants, their businesses, relatives, employees and associates, as well as individuals and entities linked to United Enterprise and Company.

Investigators will trace the sources of funds used to purchase shares, transfers between accounts, and whether United Enterprise and Company or its associates financed any of the transactions. They will also seek to identify the recipients of proceeds from share sales and dividends.

The inquiry will assess whether coordinated trading, artificial demand or fraudulent activities were used to influence share prices. It will also examine whether anyone traded shares using unpublished price-sensitive information about the companies.

The roles of Raja and Rashid will receive particular scrutiny, although the investigation will also cover other individuals and entities connected to the allegations.

Records from stockbrokers, banks and Central Depository Bangladesh Limited (CDBL) will also be reviewed to determine whether there were irregularities in opening and operating BO accounts, executing share orders, transferring funds and shares, or distributing dividends.

The investigation will further assess whether any securities laws, regulations or BSEC directives were violated. The commission will decide on further action based on the findings of the inquiry.