Hiru, family members fined Tk134cr over stock manipulation of 4 companies
The controversial stock market investor and his family and associates were fined earlier several times for share manipulation
The Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, has imposed a fine of over Tk134.53 crore on 10 individuals, including investor and government official Abul Khayer, his family members, and two institutions owned by them, for share manipulation.
Khayer and his family members were fined for manipulating the stocks of four listed companies: Fortune Shoes, Delta Life Insurance Company, NRB Commercial Bank, and Sonali Paper & Board Mills.
The decision to impose the fine was made during the commission's meeting on 3 December, according to a press release issued by the regulator on Thursday.
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Abul Khayer, also known as Hiru, was fined Tk32.46 crore while his father, Abul Kalam Matber, received a fine of Tk33.66 crore.
In addition to Abul Khayer, fines were also imposed on his wife Kazi Sadia Hasan, his mother Aleya Begum, his sister Konika Afroze, and his brothers – Mohammad Basher, Sajed Madbar, and Kazi Farid Hasan.
Furthermore, Kazi Sadia Hasan's brothers – Kazi Fuad Hasan and Kazi Farid Hasan – were fined. DIT Cooperative, where Abul Khayer serves as chairman and his wife as managing director, along with Monarch Holding, were also fined.
According to the press release, the highest fine of Tk77.21 crore was imposed for the share manipulation of Fortune Shoes, Tk49.85 crore for manipulating shares of Delta Life Insurance, Tk6.73 crore for NRB Commercial Bank, and Tk75 lakh for Sonali Paper & Board Mills.
However, it remains unclear how much profit or gain was made from the shares of these companies.
Previously, in 2022, Abul Khayer, also known as Hiru, a prominent investor in the capital market, and his family faced regulatory fines for manipulating shares of around a dozen companies. The BSEC imposed fines totalling over Tk14 crore for serious violations of securities laws by influencing the share prices of 11 companies, according to an enforcement report from the commission.
Despite nearly two years passing, Khayer and his family members had paid only around Tk5 crore in fines by 15 October. As they failed to pay the fines within the prescribed period, the regulator filed four cases in October this year to recover the outstanding dues, according to the commission.
When contacted, Abul Khayer declined to comment on the fine.
"The previous commission, led by Shibli Rubayat Ul Islam, had fined Hiru and his associates for share manipulation before. The current commission has imposed this fine based on new findings," said BSEC spokesperson Rezaul Karim to TBS.
Fortune Shoes
According to the BSEC press release, securities laws were violated by manipulating the share transactions of Fortune Shoes between 3 October and 26 October 2021.
According to DSE data, Fortune Shoes' shares began trading at Tk75 on 3 October and reached Tk110 on 26 October. Abul Kalam Matber, DIT Cooperative, Kazi Sadia Hasan, Konika Afroze, Abul Khayer, and Sajed Madbar were fined for violating share transaction laws during this period.
Delta Life Insurance Company
Share manipulation of Delta Life Insurance Company occurred between 9 September and 26 October 2021. The share price of the company rose from Tk139 on 9 September to Tk226 on 26 October.
Sajed Madbar, Mohammad Basher, Abul Khayer, Konika Afroze, Kazi Sadia Hasan, Kazi Fuad Hasan, DIT Cooperative, and Abul Kalam Matber were fined for violating the law in relation to this share transaction.
NRB Commercial Bank
On 7 October 2021, the share price of NRB Commercial Bank was Tk24.40 and by 27 October, it increased to Tk38.30. The commission noted that securities law was violated in the bank's share transactions, leading to fines for Abul Khayer, Abul Kalam Matber, Kazi Sadia Hasan, DIT Cooperative, Aleya Begum, Monarch Holding, Konika Afroze, and Sajed Madbar.
Sonali Paper & Board Mills
From 28 June to 5 August 2021, the share price of Sonali Paper & Board Mills nearly doubled, rising from Tk209 on 28 June to Tk402.80 on 5 August.
Abul Khayer, Abul Kalam Matber, Kazi Sadia Hasan, Konika Afroze, and Kazi Farid Hasan were fined for their involvement in the manipulation of these share transactions.
