The securities regulator has imposed an aggregate amount of penalty -- Tk 23 million -- on a company and two individuals for their 'direct and indirect' involvement in the price hike of shares of a listed company.
The decision was taken at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) held at its office on Wednesday.
According to the BSEC findings, Gulam Mostofa, Nasima Akter Lata and Star Share Bazar Ltd. purchased a substantial amount of transactionable shares of Shahjibazar Power Company Limited (SPCL).
"By purchasing and holding those shares, they created an artificial crisis of shares in the market and played a significant role behind the price hike of shares," said the securities regulator.
According to the BSEC, they breached the section 17 (e) (v) of the Securities and Exchange Ordinance, 1969.
"Previously, the securities regulator took the decision of taking punitive measures against those individuals and the company," it said.
On June 2, 2015, the securities regulator took the decision of filing a case against them with the special tribunal.
Later, they submitted petitions to review the regulatory decision.
Finally on Wednesday, the securities regulator took the decision of imposing penalty on Gulam Mostofa, Nasima Akter Lata and Star Share Bazar.
At the meeting, the securities regulator also imposed a penalty of Tk 0.3 million on Salta Capital, as it violated the securities rules regarding margin loans.
Saad Securities will also have to pay a penalty of Tk 0.2 million for flouting the securities rules.
