The Bangladesh Securities and Exchange Commission on Thursday fined former Alltex Industries deputy managing director Nazrul Islam and his wife Tk 20 lakh collectively against their Tk 31.95 lakh illicit gains through insider trading.
The capital market regulator imposed the penalty at a commission meeting presided over by its chairman M Khairul Hossain.
Although the fraudulent act of Nazrul and his wife had been proved by the BSEC’s investigation, slapping Tk 20 crore would allow them to enjoy rest Tk 11.95 lakh illicit gains they made in violation of securities rules.
BSEC officials, however, said that once such crime is identified by the regulators in the developed markets, they usually impose penalty that would be higher than the illicit gains.
As per the BSEC’s investigation, Nazrul’s wife, Shamima Nazrul, used to trade shares of Alltex Industries Limited through a beneficiary owners account in her name.
She used to trade shares of Alltex based on the undisclosed price sensitive information of the entity provided by Nazrul, also an assistant manager of Alltex Spinning from 2005-2016, the BSEC investigation found.
As per section 3(1) of Securities and Exchange Commission (Beneficiaries Business Prohibition)
Rules, 1995 none can make transaction based on unpublished price sensitive information.
The capital market regulator at the meeting fined all the shareholder-directors of Delta Life Insurance Company Limited (DLICL) and the company secretary Tk 2 lakh each for breaching securities rules in connection with the entity’s announcement to purchase 1,00,000 shares of Delta BRAC Housing Limited.
The regulator at the meeting also fined all the shareholder-directors of Raspit Data Management and Telecommunication for breaching securities rules by non-submission of financial statement for the year ended on June 30, 2015 and first quarterly report for September 30, 2015.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Banking