Bangladesh cricket star Shakib under SEC investigation over allegations of capital market manipulation

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SERIES TRADING IN ONE BANK SHARES

The DSE reviewed the unusual bullish trend in shares of listed company One Bank late last year. Its share price rose from Tk 12.6 to Tk 20.1 between November 15 and 30, an increase of 59.52%.

The survey then compiled a list of top buyers and found that 15 people and companies traded the most shares. Among them, Shakib himself traded 8.5 million shares, of which 7.5 million were purchased.

Other actors involved in these exchanges include the controversial stock market actor Md Abul Khayer Hiru, the deputy clerk of the cooperatives department, his wife Kazi Sadia Hasan, his father Abul Kalam Matber and his sister Kanika Afroze.

According to the report, the leader of the circle conducts a series of exchanges of One Bank shares through 13 BO accounts to artificially increase prices. The Matber BO account is mainly used for transactions.

This group bought nearly 85% of One Bank shares in a single day. Along with the capital market, they bought shares on the block market in the same way. They also traded shares with each other, the investigation found.

After pushing the trend abnormally high for these stocks, the close-knit group made Tk143.5m in capital gains from sales in just 15 days and can make a further profit of Tk143.8m by selling what he still has in his possession.

The report mentioned that the serial transactions violated Section 17 of the Securities and Exchange Ordinance, 1969.

“It is evident that Abul Kalam Matber and his associates directly and indirectly traded in One Bank series of shares and increased their prices using the 13 BO account.”

The SEC fined Matber and his associates Tk30 million on August 2, according to the report.

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