The Bangladesh Securities and Exchange Commission (BSEC) has imposed a combined fine of Tk 4.51 crore on three investors for artificially inflating the share price of Midland Bank. According to the regulator, their manipulation had an abnormal impact on the market.

As per the decision, punitive action has been taken against Quest Asia Overseas owner Anisul Islam, his wife Nahar-e-Jannat, and the company itself. Quest Asia received the highest penalty of Tk 3.70 crore, while Anisul Islam was fined Tk 80 lakh and Nahar-e-Jannat Tk 1 lakh.

BSEC’s investigation found that between March 13 and September 23, 2024, Quest Asia and its associates bought 2.19 crore shares and sold 1.73 crore shares of Midland Bank in both the public and block markets. During this period, they were involved in 17.99 percent of the bank’s total traded shares.

According to the regulator, this unusually large volume of trading created upward pressure on the share price. Midland Bank’s share price surged by 123 percent, reaching Tk 27.60. Through this manipulation, the group made an estimated capital gain of Tk 4.99 crore.

During the BSEC hearing, Anisul Islam claimed they were encouraged after reading a newspaper report describing Midland Bank as being in the “green zone.” He argued that their transactions were based on publicly available information and not intended as manipulation. He also stated they were unaware of the rule limiting daily transactions in a single company, and insisted their goal was to ensure profit through gradual trading while keeping the market stable.

However, the commission rejected their explanation. BSEC’s assessment concluded that they violated the rule restricting excessive trades in a single security and intentionally influenced the share price.

According to Section 17 of the Securities and Exchange Ordinance, 1969, influencing the buying and selling of any security for personal gain or artificially affecting its price is a punishable offense.