Nazmul Ahsan
The ministry of finance (MoF) directed Sunday the securities regulator to carry out further investigations into 14 different kinds of alleged gross irregularities in the capital market.
Such allegations include, among others, serial trading, share manipulation by companies and individuals and the state of affairs concerning 100 top overvalued listed companies, in the light of the findings of the probe committee on share market scam.
The ministry has asked Securities and Exchange Commission (SEC) to complete further investigations into eight, out of 14 such irregularities, by next one month, and, into the remaining six, within the next three months.
The directives of the ministry came on the basis of the recommendations by the probe committee that were placed before Prime Minister Sheikh Hasina in early part of the current month.
Sunday's directive by the MoF to the SEC followed the instruction received from the highest level of the government, a high official in the Ministry of Finance (MoF) said.
The SEC must act, as per the suggestion made in the report of the probe committee, to move ahead with their further investigations, the directives said.
"The directives for further investigation have been given to the SEC to confirm the alleged misdeeds by individuals and institutions in the capital market," Shafiqur Rahman Patwary, Secretary, Banking and Financial Institution Division, MoF, told the FE.
The probe committee on share market scam, headed by Ibrahim Khaled, submitted its report to the government on April 7 last.
The eight-point irregularities on which further investigation will be conducted by the securities regulator by next one month include: investigation on 'shadow accounts', or, what are known as the omnibus accounts.
The probe committee in its report had termed this practice of share transaction unethical and identified eight 'omnibus' accounts for making further investigations.
The reasons and factors behind the abnormal share price-hike in the capital market will now be investigated further.
The period that should be covered by such further investigations, will, in accordance with the suggestion of the probe committee, be that of between January, 2009 and December, 2010.
The details under 'Know Your Client (KYC)' of eight big investors will also be examined. The identified individuals, in the report of the probe committee, for further detailed KYC investigations are: Amin Razwani, Aliza Rahman, MD Bhai, Nurjahan Huda, Rehana Khan Mojlish, Nripan Chowdhury, and Richard D Rozerio.
Serial trading in manipulating the share market, as mentioned in the report of the probe committee, will be re-investigated within next one month by the SEC following the Sunday's directive by the MoF.
Examining the shadow or omnibus account of Mosaddek Ali Falu is also included in the list for further investigations.
The 50 top listed companies which are allegedly responsible for abnormal increases of the prices of their respective shares in 2009, will come under the process of further investigations by the SEC.
The companies are: Beach Hatchery, Purabi General Insurance, Aftab Automobiles, Padma Cement, Rahim Textile, Meghna Pet, Desh Garments, Confidence Cement, Orion Infusion, Delta Spinning, Olympic Industries, Savar Refrectories, Samorita Hospital, First Lease International, Meghna Confidence Milk, Ctg Vegetables, Hakkani Pulp, Mithun Knitting, Reckitt & Benckiser, BEXTEX, Fuwang Ceramic, Dulamia Cotton, Meghna Cement, Jamuna Oil, Rahima Food, Aramit Cement, BD Auto Car, Standard Insurance, Prime Textile, Northern Insurance, Fine Foods, Eastern Housing, Dhaka Fisheries, CMC Kamal, Phoenix Finance, Uttara Finance, Asia Pacific, Anwar Galvanizing, Aziz Pipes, S. Alam, Modern Dyeing, Saiham Textile, BD Thai, Anlima Yarn, City General Ins, Sonar Bangla Ins, Global Insurance, BD Welding, Paramount Insurance and Standard Ceramic.
Another group of 50 top listed companies which were also identified by the probe committee for alleged abnormal hikes in the prices of their respective shares in 2009, will also come now within the ambit of further investigations by the SEC.
The companies are: Ctg Vegetables, Safko Spinn, Tallu Spinn, Rahima Food, BD Welding, Prime Insurance, Monno Staffler, Sonargaon Textile, Dhaka Insurance, City General Ins, HR Textile, Mithun Knitting, Mercantile Insurance, Libra Infusion, Delta Life Insurance, One Bank Ltd, Continental Insurance, Aramit Cement, Singer BD, Monno Ceramics 1, Takaful Insurance, Imam Button, Meghna Confidence Milk, Ambee Pharma, Midas Financing Ltd, Savar Refrectories, Prime Textile, Paramount Insurance, Fu Wang Food, Janata Insurance, Sonali Ansh, Fine Food, Quasem Drycells, Progressive Life Ins, BIFC, Sonar Bangla Ins, BSRM Steel, Purabi General Insurance, National Life Insurance, Rupali Life Insurance, Premier Leasing, Desh Garments, Standard Bank, Apex Spinning & Knitting, Republic Insurance, Union Capital, Eastern Housing, Agrani Insurance, Phoenix Insurance and International Leasing.
Six kinds of alleged irregularities, to be investigated further within the next three months, include: the irregularities and suspected manipulations causing abnormal increases of share prices of 17 listed companies -- BD Thai Aluminum Ltd and JEM Global, Khulna Power Company Ltd, GMG Airlines, Chittagong Vegetable Oil Industries, Beach Hatchery Ltd, Bangladesh Welding Electrodes Ltd, CMC Kamal Textile Mills Ltd, Meghna Cement Mills Ltd, Malek Spinning Mills Ltd, Mobil Jamuna Lubricants Bangladesh Ltd, Barakatullah Electro Dynamics Ltd, Salvo Chemical Industry Ltd, United Airways (BD) Ltd, Beacon Pharmaceuticals Ltd, MI Cement Factory Ltd and Fu-Wang Ceramics Ltd.
Besides, the names of companies which were mentioned in the report of the probe committee for alleged high re-valuation of their assets, will now come under further investigations by the SEC, according to the directives of the MoF.
The unethical practices did allegedly take place, involving issuance of right and preference shares by a number of listed companies and the cases of those companies will now investigated by the SEC.
Furthermore, the share businesses of two individuals -- MD Abdus Salam and Shamima Sharif as was recommended by probe report for further investigations -- will be taken up by the regulator for follow-up actions under the latest directive of the MoF in order to ascertain or confirm their involvement in any manipulation of share prices in the capital market.
Besides, the Public Issue Rules, 2006 will be re-examined and amended following consultations with the stakeholders within the next three months.
Asked, Helal Uddin Nizami, Member, SEC, said they will soon work out the strategies to conduct further investigations into the matters concerning 14 issues at the directive of the government.
"We are now ready, following the reconstitution of the SEC, to make further investigations into the alleged irregularities as we have been asked by the MoF," Nizami told the FE.
The ministry of finance (MoF) directed Sunday the securities regulator to carry out further investigations into 14 different kinds of alleged gross irregularities in the capital market.
Such allegations include, among others, serial trading, share manipulation by companies and individuals and the state of affairs concerning 100 top overvalued listed companies, in the light of the findings of the probe committee on share market scam.
The ministry has asked Securities and Exchange Commission (SEC) to complete further investigations into eight, out of 14 such irregularities, by next one month, and, into the remaining six, within the next three months.
The directives of the ministry came on the basis of the recommendations by the probe committee that were placed before Prime Minister Sheikh Hasina in early part of the current month.
Sunday's directive by the MoF to the SEC followed the instruction received from the highest level of the government, a high official in the Ministry of Finance (MoF) said.
The SEC must act, as per the suggestion made in the report of the probe committee, to move ahead with their further investigations, the directives said.
"The directives for further investigation have been given to the SEC to confirm the alleged misdeeds by individuals and institutions in the capital market," Shafiqur Rahman Patwary, Secretary, Banking and Financial Institution Division, MoF, told the FE.
The probe committee on share market scam, headed by Ibrahim Khaled, submitted its report to the government on April 7 last.
The eight-point irregularities on which further investigation will be conducted by the securities regulator by next one month include: investigation on 'shadow accounts', or, what are known as the omnibus accounts.
The probe committee in its report had termed this practice of share transaction unethical and identified eight 'omnibus' accounts for making further investigations.
The reasons and factors behind the abnormal share price-hike in the capital market will now be investigated further.
The period that should be covered by such further investigations, will, in accordance with the suggestion of the probe committee, be that of between January, 2009 and December, 2010.
The details under 'Know Your Client (KYC)' of eight big investors will also be examined. The identified individuals, in the report of the probe committee, for further detailed KYC investigations are: Amin Razwani, Aliza Rahman, MD Bhai, Nurjahan Huda, Rehana Khan Mojlish, Nripan Chowdhury, and Richard D Rozerio.
Serial trading in manipulating the share market, as mentioned in the report of the probe committee, will be re-investigated within next one month by the SEC following the Sunday's directive by the MoF.
Examining the shadow or omnibus account of Mosaddek Ali Falu is also included in the list for further investigations.
The 50 top listed companies which are allegedly responsible for abnormal increases of the prices of their respective shares in 2009, will come under the process of further investigations by the SEC.
The companies are: Beach Hatchery, Purabi General Insurance, Aftab Automobiles, Padma Cement, Rahim Textile, Meghna Pet, Desh Garments, Confidence Cement, Orion Infusion, Delta Spinning, Olympic Industries, Savar Refrectories, Samorita Hospital, First Lease International, Meghna Confidence Milk, Ctg Vegetables, Hakkani Pulp, Mithun Knitting, Reckitt & Benckiser, BEXTEX, Fuwang Ceramic, Dulamia Cotton, Meghna Cement, Jamuna Oil, Rahima Food, Aramit Cement, BD Auto Car, Standard Insurance, Prime Textile, Northern Insurance, Fine Foods, Eastern Housing, Dhaka Fisheries, CMC Kamal, Phoenix Finance, Uttara Finance, Asia Pacific, Anwar Galvanizing, Aziz Pipes, S. Alam, Modern Dyeing, Saiham Textile, BD Thai, Anlima Yarn, City General Ins, Sonar Bangla Ins, Global Insurance, BD Welding, Paramount Insurance and Standard Ceramic.
Another group of 50 top listed companies which were also identified by the probe committee for alleged abnormal hikes in the prices of their respective shares in 2009, will also come now within the ambit of further investigations by the SEC.
The companies are: Ctg Vegetables, Safko Spinn, Tallu Spinn, Rahima Food, BD Welding, Prime Insurance, Monno Staffler, Sonargaon Textile, Dhaka Insurance, City General Ins, HR Textile, Mithun Knitting, Mercantile Insurance, Libra Infusion, Delta Life Insurance, One Bank Ltd, Continental Insurance, Aramit Cement, Singer BD, Monno Ceramics 1, Takaful Insurance, Imam Button, Meghna Confidence Milk, Ambee Pharma, Midas Financing Ltd, Savar Refrectories, Prime Textile, Paramount Insurance, Fu Wang Food, Janata Insurance, Sonali Ansh, Fine Food, Quasem Drycells, Progressive Life Ins, BIFC, Sonar Bangla Ins, BSRM Steel, Purabi General Insurance, National Life Insurance, Rupali Life Insurance, Premier Leasing, Desh Garments, Standard Bank, Apex Spinning & Knitting, Republic Insurance, Union Capital, Eastern Housing, Agrani Insurance, Phoenix Insurance and International Leasing.
Six kinds of alleged irregularities, to be investigated further within the next three months, include: the irregularities and suspected manipulations causing abnormal increases of share prices of 17 listed companies -- BD Thai Aluminum Ltd and JEM Global, Khulna Power Company Ltd, GMG Airlines, Chittagong Vegetable Oil Industries, Beach Hatchery Ltd, Bangladesh Welding Electrodes Ltd, CMC Kamal Textile Mills Ltd, Meghna Cement Mills Ltd, Malek Spinning Mills Ltd, Mobil Jamuna Lubricants Bangladesh Ltd, Barakatullah Electro Dynamics Ltd, Salvo Chemical Industry Ltd, United Airways (BD) Ltd, Beacon Pharmaceuticals Ltd, MI Cement Factory Ltd and Fu-Wang Ceramics Ltd.
Besides, the names of companies which were mentioned in the report of the probe committee for alleged high re-valuation of their assets, will now come under further investigations by the SEC, according to the directives of the MoF.
The unethical practices did allegedly take place, involving issuance of right and preference shares by a number of listed companies and the cases of those companies will now investigated by the SEC.
Furthermore, the share businesses of two individuals -- MD Abdus Salam and Shamima Sharif as was recommended by probe report for further investigations -- will be taken up by the regulator for follow-up actions under the latest directive of the MoF in order to ascertain or confirm their involvement in any manipulation of share prices in the capital market.
Besides, the Public Issue Rules, 2006 will be re-examined and amended following consultations with the stakeholders within the next three months.
Asked, Helal Uddin Nizami, Member, SEC, said they will soon work out the strategies to conduct further investigations into the matters concerning 14 issues at the directive of the government.
"We are now ready, following the reconstitution of the SEC, to make further investigations into the alleged irregularities as we have been asked by the MoF," Nizami told the FE.
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