The securities regulator has decided to forward its investigation report on the involvement of Investment Corporation of Bangladesh (ICB) officials in the manipulation of Fortune Shoes' stock price to the Anti-Corruption Commission (ACC) and the finance ministry for necessary actions.
The decision was taken at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) at its office on Wednesday.
A BSEC investigation committee, formed after the fall of the previous government, investigated the alleged manipulation that took place between July 2017 and September 2022.
According to the BSEC, a group of manipulators led by controversial investor Md Abul Khayer was behind the abnormal price hike of Fortune Shoes during that period. The manipulators later offloaded their holdings at inflated prices, which were subsequently purchased by the state-run ICB.
BSEC spokesperson Md Abul Kalam said certain ICB officials, involved in managing the company's portfolio, assisted the manipulators in offloading their shares.
"They facilitated the manipulation and the exit of the manipulators, causing losses to the state-run entity[ICB]," he said.
The regulator will send its findings against the ICB officials to the Financial Institutions Division (FID) of the Ministry of Finance, as ICB operates under this division. The report will also be forwarded to the ACC for actions against the officials involved.
Similarly, the findings against Md Abul Khayer and his associates will be sent to the ACC for further measures. Mr Khayer, an employee of the Department of Cooperatives, will also be referred to the FID so it may request action from the relevant ministry.
In another decision taken Wednesday, the BSEC barred former chief financial officer (CFO) of NRB Bank, Mohammad Kamrul Hasan, from holding any job or position related to the capital market for five years.
The commission found his involvement in the manipulation of Pioneer Insurance Company's stock price between April and September 2021. He has also been fined Tk 7.5 million for his role in the misconduct.
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