BBS CABLES SHARE PRICE MANIPULATION

BSEC holds hearing of chairman’s wife, MD, others

Staff Correspondent | Published: 00:05, Dec 02,2017

 
 

The Bangladesh Securities and Exchange Commission has held a hearing of the persons accused of manipulating BBS Cables Limited’s share prices.
Khadija Taher Syria, wife of BBSCL chairman Mohammad Badrul Hasan, and BBSCL managing director Abu Noman Howlader are among the accused.
BSEC sources said the accused defended them at the hearing conducted on Thursday.
A senior official of the commission said that the accused gave written explanations regarding the allegations raised against them after a BSEC investigation committee found wrongdoings behind the unusual price hike of BBS Cables after its enlistment with the bourse in July this year.
The BSEC official said that the commission received their explanations and would take final decision later.
The share prices of BBS Cables which were issued at Tk 10 each through an initial public offering had increased to Tk 149.70 on August 21 in just 14 trading sessions.
On August 7, the company following a query of Dhaka Stock Exchange, however, stated that there was no price sensitive information behind the unusual price hike, prompting the BSEC to form the investigation committee.
The BSEC investigation committee headed by its deputy director Mohammad Shamsur Rahman, however, found that BBS Cables hid price sensitive information related to wining two contracts amounting to Tk 98.74 crore of Bangladesh Rural Electrification Board.
Although BBSCL got notification of awards of the two contracts on July 31, the same date of its debut trading, the company disseminated the information to the stock exchanges on August 27 when the final contracts were signed with the BREB, which was a violation of a BSEC directive.
The BSEC directive makes dissemination of any price sensitive information mandatory for the listed companies within 30 minutes of taking decision or immediately after getting such information.
Before the dissemination of the price sensitive information on August 27, Khadija Taher Syria, Abu Noman Howlader, Noman’s brother-in-law Md Forhard Hossain, brokerage firm Prudential Capital Limited, investors Hasan Jamil, Md Nazrul Islam, Syed Anisur Rahman and Kabir Ahmed, made substantial amount of profits by trading shares of BBS Cables. By trading shares during July 31 to August 24, Khadija realised Tk 1.87 crore in profit and her unrealised gains were Tk 0.87 crore, the BSEC investigation found.
Abu Noman Howlader’s realised and unrealised gains were Tk 0.65 crore and Tk 5.84 lakh respectively, while Md Forhard Hossain’s realised gains were Tk 26 lakh.
Investors Kabir Ahmed, Hasan Jamil, Md Nazrul Islam and Syed Anisur Rahman realised Tk 47.96 lakh, Tk 61.30 lakh, Tk 50.10 lakh and Tk 43.60 lakh in gains respectively. While, brokerage firm Prudential Capital Limited realised Tk 1.15 crore by trading shares during July 31 to August 24. 

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