National team cricketer Shakib Al Hasan and his mother Shireen Akhtar have to pay a fine of 50 lakh Taka after making a profit of 90 lakh Taka through manipulation in share trading. Bangladesh Securities and Exchange Commission (BSEC) fined on September 24. However, the Capital Markets Regulatory Agency has recently released detailed information on the manipulation. The shares of an insurance company were manipulated in the name of Shakib and his mother as a joint BO. The name of this company listed in the capital market is Paramount Insurance.
According to BSEC’s A-related report, Shakib Al Hasan was involved in the manipulation of shares of Paramount Insurance in September last year. The BO account (Beneficiary Owners) used in the stock market to manipulate shares of Paramount Insurance was opened in the brokerage house affiliated to a private bank in the name of Shakib Al Hasan and his mother Shireen Akhtar.
Based on an investigation report by the Dhaka Stock Exchange (DSE), the BSEC fined several individuals and institutions, including Shakib Al Hasan, the much talked about stock market manipulator Abul Khair Hiru. DSE prepared the investigation report on the manipulation of shares of Paramount Insurance. Investigating the unusual increase in the company’s share price in one month from August 17 to September 19 last year.
It can be seen that the price of each share of Paramount in the market has increased by about 35 Taka or 85 percent during the mentioned period, i.e. in one month. At that time, the company’s share price increased at an unusual rate by series transactions or swaps among themselves. Abul Khair Hiru, Shakib Al Hasan and their close relatives, interested persons and organizations were involved in this.
Shakib Al Hasan and his mother Shireen Akhtar and seven individuals and institutions were fined Tk 1 crore 63 lakh by the BSEC for manipulating the shares of Paramount Insurance. Other individuals and companies fined are Ishal Communication, Abul Khair Hiru, Abul Khair Hiru’s father Abul Kalam Matlub, Hiru’s owned companies Monarch Mart, Lava Electrodes and Zahid Kamal. All these individuals and organizations were fined 1 crore 63 lakh Taka. Of this, Ishal Communication was fined the maximum Tk 75 lakh. Cricketer and former member of parliament Shakib Al Hasan was fined the second highest Tk 50 lakh. Abul Khair Hiroo was fined Rs 25 lakh, the third highest. Apart from this, Abul Kalam Matlub was fined Tk 10 lakh, Monarch Mart owned by Hiru Tk 1 lakh and Lava Electrodes and a person named Zahid Kamal were fined Tk 1 lakh each.
According to DSE investigation and BSEC report, Shakib Al Hasan and his mother bought 1 million 60 thousand shares of Paramount Insurance in just three days as BO. The average purchase price of these shares was 65 taka 24 paisa. About 7 crore Taka are invested for this. These shares were bought at different prices on September 12, 14 and 17 last year. About 10 lakh 21 thousand shares were bought on September 12 and 14. All the shares bought in these two days were sold by Shakib Al Hasan in a span of five days. It makes a profit of about 9 Taka per share. In all, the profit stands at 90 lakhs. Apart from this, another 40,000 shares of the company were unsold as Shakib’s BO. The amount of unrealized or unearned profit on that share was Tk 4 lakh.
A review of DSE and BSEC reports shows that national team cricketer Shakib Al Hasan made a huge profit in just five days by investing in fraudulent shares. According to multiple sources, Shakib Al Hasan himself did not directly trade in the stock market. His investments and transactions were looked after by Abul Khair Hiru, the much-discussed trader of the stock market. Shakib was called for a hearing by the BSEC after receiving evidence of Shakib’s involvement in the Paramount share manipulation incident. But Abul Khair Hiru spoke on behalf of Shakib in that hearing.
On behalf of Shakib in the hearing, Abul Khair Hiru said that the investment in the company’s shares was made after seeing the company’s fundamentals. Paramount Insurance is one of the best insurance companies in Bangladesh. Its business is also growing consistently. With this in mind, Shakib Al Hasan invested a significant amount of shares in the company. Still, why investing in the company’s shares is called manipulation is not understandable. People invest in stock market for profit, it is also the right of investors.
However, the regulatory body BSEC did not accept this explanation given on behalf of Shakib in the BSEC hearing. The agency says that ordinary investors have been affected by such activities, which are against the development of the capital market. Because of this BSEC fined Shakib Al Hasan and his mother Shirin Akhtar Tk 50 lakhs.
