Shakib Al Hasan, 6 others fined for share market manipulation
Bangladesh national cricket team’s ace all-rounder Shakib Al Hasan has been fined Tk 5 million for manipulating the share of Paramount Insurance, a listed insurance company in the share market.
Apart from him, known share market manipulator Abul Khair Hiru and five other persons and companies have been fined on the same allegation.
The decision to impose the fine was taken in the BSEC (Bangladesh Securities and Exchange Commission) meeting today, Tuesday. The decision was disclosed in a press release following the meeting.
The BSEC said Ishal Communications has been fined the most over the Paramount Insurance scam. The company has been fined Tk 7.5 million while Shakib Al Hasan and Abul Khair Hiru have been fined Tk 5 million and 2.5 million respectively.
Apart from them, Abul Khair Hiru’s father Abul Kalam Matlub has been fined Tk 1 million and his company Monarch Mart, the Lava Electrode and Zahid Kamal have been fined Tk 100,000 each on the same allegation.
BSEC said a total of seven persons and a company have been fined Tk 16.3 million for being involved in the manipulation from 17 August to 19 September last year. During this period, the share price of Paramount Insurance increased by 84 per cent.
According to the figures of the Dhaka Stock Exchange (DSE), the share price of the company was 41 taka on 17 August last year, which increased to Tk 75 by 19 September. A large-scale manipulation was behind the abnormal increase in the share price of Paramount Insurance. Shakib Al Hasan, Abul Khair and other persons who have been fined were involved in this.
Sources relevant to the share market say Abul Khair Hiru was involved in manipulating the share price of different companies on behalf of an organised ring which includes Shakib Al Hasan. He manipulated the share price using the beneficiary owners (BO) accounts opened in the name of different persons and companies.
Abul Khair Hiru was a direct student of BSEC former chairman professor Shibli Rubayat Ul Islam. As a result, he used to enjoy some special privileges after Rubayat became the BSEC president.
Even several allegations of manipulating the share market against Hiru remained uninvestigated. Although investigations were underway over some of the allegations, the then BSEC chairman slowed the process of taking any action.
There have been talks regarding Shakib Al Hasan’s investment and involvement in manipulating the share market for the last few years. However, the BSEC refrained from taking any action against him during the Awami League regime. Rather, the BSEC appointed him the special envoy of their Investors’ Education Programme.
Following the fall of the Awami League government on 5 August, BSEC cancelled Shakib Al Hasan’s appointment as special envoy. After that, the stock market regulatory agency fined the cricketer today for the first time.