The Bangladesh Financial Intelligence Unit (BFIU) has uncovered information about an investment of approximately Tk 6,798 crore in the country’s stock market through several companies and individuals. There are allegations that this huge sum was invested using irregular loans taken from banks. The financial intelligence agency suspects that the funds were used to artificially inflate share prices and manipulate the market.

BFIU has submitted its investigative report to the Bangladesh Securities and Exchange Commission (BSEC). In response, BSEC has formed a four-member investigation committee to thoroughly probe the matter. The committee has been instructed to submit its report within 60 days in order to protect investor interests and maintain market discipline.

The investigation revealed that during the tenure of a senior bank official, loans were issued under various fake names and non-existent companies from different banks. The loan money was later deposited into multiple accounts opened under different company names and used for investments in the stock market. There are also allegations that banking and trustee institutions were misused in this process.

Following the change in government, several individuals involved in these loans and investments have been arrested and are currently in jail. Additionally, they have been declared “persona non grata” — permanently banned from the stock market.

Eight companies identified in the investigation are:

• Absolute Construction and Engineering
• Apollo Trading
• Basicmco Holdings
• Jupiter Business
• New Dhaka Industries
• Crescent
• Tradenext International
• Central Land and Building

These entities have been preliminarily identified as being involved in manipulating the stock market and influencing board decisions of listed companies.

The investigation also found that several companies under the Beximco Group manipulated stock prices by artificially inflating share values. In this regard, the involved companies were fined a total of Tk 428 crore. Specifically, Apollo Trading, Jupiter Business, Crescent, and Tradenext International were fined individually.

A BSEC official stated that after the fines were imposed, some of the companies filed for reconsideration. Later, some companies filed writ petitions in court and secured stay orders, which has delayed the fine collection process.

On the other hand, Beximco Group officials have declined to comment on the investigation or the fines. According to sources, major investment decisions were previously directly controlled by the group’s top leadership. Since the change in government, several of the group’s entities have faced capital shortages due to an inability to sell shares and bonds.