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Wednesday, October 29, 2014, Kartik 14, 1421, Muharram 4, 1436 Hijr

Mosaddek Ali Falu fined Tk 1cr for share price manipulation
Observer Online Desk
Publish Date : 2014-10-29,  Publish Time : 22:46,  View Count : 23
Bangladesh Security and Exchange Commission (BSEC), the stock market watchdog body, on Wednesday fined BNP chairperson’s advisor Mosaddek Ali Falu Tk 1 crore (10 million) forhis involvement in share price manipulation in 2010-11 share market scam.

According to a BSEC press release, the watchdog body in its 530th regular meeting, with commission chairman Professor M Khairul Hossain in the chair, made the decision when it found the allegation against Falu to be true.

The BSEC also found Falu’s clarification unacceptable on some allegations of unusual transactions in the stock market.

The BSEC said that on the basis of the findings of Khondkar Ibrahim Khaled-led inquiry committee, it brought allegation against Falu. The BSEC conducted its own comprehensive and detailed investigation twice. It also received clarification from Falu on the allegation.

After analyzing all the evidences, it clearly proved to the BSEC that Mosaddek Ali Falu had influenced the prices of shares of IFIC Bank Ltd and Beximco Ltd by creating artificial crisis through unusual transaction of the shares of the two companies in his omnibus account.

The BSEC also fined one Golam Mostafa Tk 3 crore for influencing share prices of Eastland Insurance, Navana CNG, Olympic Industries, Union Capital, LankaBangla Finance, and First Lease International.

The BSEC imposed the penalty against the duo (Mosaddek Ali Falu and Golam Mostafa) as per Section 17 of Securities and Exchange Ordinance, 1969, said the press release.


Editor : Iqbal Sobhan Chowdhury
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