1996 share market scam cases transferred to Special Tribunal

Mohammad Ali | Published: June 25, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The long pending 1996 share market scam cases are now ready at the recently formed capital market Special Tribunal for their speedy disposal, sources said.
The much-talked about 15 criminal cases were filed against dozens of persons of 15 listed companies and brokerage firms on charge of manipulating share prices through 'fraudulent' means in 1996.
Of the 15 cases, some were already included in the list for hearing at the Special Tribunal, which was formed to try such suspected manipulators at its dock, said the sources.
"Documents of all the 15 cases were transferred to the tribunal," an official told the FE Wednesday preferring anonymity.
The tribunal, he added, also directed the concerned persons to submit certified copies of latest court orders, at some of the cases, before it on July 7, 2015.
Bangladesh Securities and Exchange Commission (BSEC) filed the criminal cases under Section 17 of the Securities and Exchange Ordinance (SEO)-1969.
The eight listed companies, against whom BSEC filed cases, are Shine Pukur Holdings Ltd, Beximco Pharmaceuticals Ltd, Olympic Industries Ltd, Chittagong Cement Clinker Grinding Co. Ltd, Amam Sea Food Industries Ltd, Rupon Oil and Feeds Ltd, Chic Tex Ltd and Apex Foods Ltd, as per available sources.
While the seven dealers/brokers are Doha Securities, Imtiaz Hossain and Co, SES Company Ltd, Premium Securities Ltd, HMMS and Associates, Securities Consultants Ltd and First Capital Securities Ltd.
The cases were filed following recommendations made by a four-member enquiry committee on March 27, 1997.
The SEO stated maximum punishment of five-year jail term or fine of minimum Tk 0.5 million or both.
Housed on the 9th floor at Bangladesh House Building Finance Corporation (BHBFC) building in the Purana Paltan area, the tribunal started its formal judicial function this month.
In January of 2014, the government formed this Special Tribunal in Dhaka through a gazette notification.
Earlier, relevant provisions at the SEO were amended in late 2012 empowering the government to set up one or more such special tribunals.
Formation of the tribunal, among others, aims to reduce the backlog of capital market cases by quick disposal of the increasing number of legal disputes.
As per information available with the regulator, the number of total pending cases -- both civil and criminal -- already crossed 535. The backlog was with only 52 cases as of June 1999.
Of the cases, the much-discussed ones are the 15 criminal cases filed against suspected manipulators involved in the 1996 share-market debacle and two more such cases lodged on the 2010 scam.
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