Spl tribunal hands down 2-yr sentence in maiden verdict

The special tribunal on capital market Monday in its maiden verdict sent one Mahbub Sarwar to prison for two years after he was found guilty of manipulating the stock prices through social networking sites in 2010, the petitioner's lawyer said.
Humayun Kabir, the judge of the tribunal, delivered the verdict on completion of the hearing of the case.
"Sarwar has been sentenced to suffer two years imprisonment since the allegations brought against him have been proved beyond doubt," said Md. Hashibur Rahman, lawyer of the Bangladesh Securities and Exchange Commission (BSEC).
Hashibur said the accused, a former merchant bank employee, had breached the securities rules by giving tips to investors through his social networking sites in exchange for money.
"He did not have necessary approval from the regulatory body to give such tips to investors. The tribunal jailed Mr. Sarwar under section 24, Securities and Exchange Ordinance, 1969 and under section 18, Securities and Exchange Commission Act, 1993," said the lawyer.
The section 18 of the Securities and Exchange Commission Act of 1993 says that the imprisonment under it will be rigorous one.
He said at first the case was filed against Mr. Sarwar with the CMM Court. Later, it was transferred to the Sessions Court and, finally, to the special tribunal on capital market issues.
Under the securities rules, investment advice is legal, but the relevant advisor has to take a licence from the SEC and meet some other requirements to deliver his/her services.
A joint team of the RAB and the securities regulator nabbed stock tipster Sarwar, who had thousands of 'followers' on his social networking sites, on March 3, 2010 from his office at a private merchant bank.
In early 2010, the securities regulator formed a probe body to investigate rumours spread daily from social networking sites on stock trading and Mr Sarwar's arrest came months after the BSEC's move.
In his blog sites, Mr Sarwar allegedly claimed that his advice would help clients make windfall profit.  
BSEC spokesperson Mohammad Saifur Rahman, also an executive director, hailed the tribunal's verdict terming it 'revolutionary' for the sake of discipline in the stock market.
"Previously, manipulators managed to escape as there was no tribunal. But now they will have to think several times before indulging into market manipulative activities. We hope this verdict will be helpful in curbing manipulation," Mr. Rahman told the FE.
On January 2, 2014, the government set up the special tribunal under the Securities and Exchange Ordinance (SEO), 1969 aiming to quickly dispose of the cases relating to the stock market.
On February 24, 2014, the government appointed District Judge Humayun Kabir  as the head of the tribunal.
Earlier in late 2012, the SEO was amended in the parliament empowering the government to set up the special tribunal(s).
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