Mostafa fined Tk 30m, Falu Tk 10m

The securities regulator has fined Golam Mostafa Tk 30 million and ntv Chairman Alhaj Md. Mosaddek Ali Falu Tk 10 million for their alleged involvement in unusual manipulative share transactions, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) imposed the fine at its meeting held at the BSEC office Wednesday.
The regulator said fine was imposed on Mr. Falu and Mr. Mostafa after conducting further investigations twice in line with the recommendations made by Khondkar Ibrahim Khaled-led probe body.
Khondkar Ibrahim Khaled-led probe body was formed by the government after the largest ever stock market debacle occurred in December (2010)-January (2011).
 "It was proved through the analysis of facts and findings that Md. Mosaddek Ali and Golam Mostafa influenced the share price by creating artificial demand through their omnibus accounts," the securities regulator said.
According to BSEC, Mr. Falu executed unusual trading of the shares of IFIC Bank and BEXIMCO Limited.
On the other hand, Mr. Mostafa executed unusual trading of the shares of Eastland Insurance Company, Navana CNG, Olympic Industries, Union Capital, LankaBangla Finance and First Lease International.
The BSEC has also said that Mr. Falu and Mr. Mostafa influenced the share prices by creating 'false and misleading' appearance of their active trades.
 "Both of them were granted hearing by the regulator. The regulator fined them as their explanations were not acceptable to the BSEC," the regulator said.
Mr. Falu was not available over cell phone for his immediate reaction. It was not also possible to contact Mr. Mostafa.
At Wednesday's meeting, the securities regulator fined each of the directors of Shahjibazar Power Company, Tk 1.0 million, its managing director Tk 0.5 million and the issue of chief financial officer was referred to the enforcement department for further action as they provided false information in its third quarter earnings report.
The Shahjibazar Power Company provided false information in its third quarter earnings report that ended on March 31, 2014 and showed EPS at Tk 2.54.
Another report adds: Four private banks will issue an aggregate amount of bonds worth Tk 10.0 billion to fulfil the condition of Basel-II along with boosting their respective capital base, officials said.
The securities regulator approved the proposals of issuing bonds at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per BSEC approval, Prime Bank will issue non-convertible sub-ordinate bonds worth Tk 2.5 billion.
Jamuna Bank will issue Tk 2.0 billion fully redeemable non-convertible bonds.
Bank Asia and Eastern Bank will issue non-convertible sub-ordinate bonds worth Tk 3.0 billion and Tk 2.5 billion respectively.

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