Women investors in the capital market, Roksana Amjad and her associates have been accused of increasing the share price of Global Insurance through manipulation (series trading) and making huge profits. One of the collaborators in this work was her husband retired military doctor. Amjad Hossain Fakir. He is also a share trader.
The capital market regulator Bangladesh Securities and Exchange Commission (BSEC) fined the husband and wife and their associates Tk.
According to the information, the incident of manipulation of shares of Global Insurance took place from April 5 to June 14, 2021. When the matter came to the attention of the BSEC, the Dhaka Stock Exchange (DSE) was ordered to form an inquiry committee on June 15. The DSE has submitted a report to the commission after conducting an investigation into the share transactions of Global Insurance.
In the investigation report, it is mentioned that Roksana Amjad and her associates have taken out a total profit of 1 crore 13 lakh 86 thousand 69 taka by trading shares of Global Insurance through manipulation at that time. In view of this, BSEC summoned the accused for hearing. BSEC has taken strict measures against manipulation as the statements of the accused were not found acceptable in the hearing process.
Although the names of Amjad Hossain Fakir, Roksana Amjad and their associates were mentioned in the allegations of share manipulation during the previous government, no strict action was taken against anyone. However, after the political change, the new commission headed by BSEC chairman Khandaker Rashid Maqsood took strict action against them.
According to the BSEC order, it is evident from the statement of Roksana Amjad and her associates in the hearing of the BSEC that the complaints presented are correct and the normal investors of the capital market have been harmed as a result of the activities, which are contrary to the development of the capital market. In this case, the explanation of Roksana Amjad and her associates was not considered acceptable by the Commission. As the relevant activities of Roxana Amjad and its associates violated Section 17(c)(5) of the Securities and Exchange Ordinance, 1969, which is contrary to the Securities Act.
The order said that the above activities of Roxana Amjad and her associates constitute an offense punishable under Section 22 of the Securities and Exchange Ordinance, 1969. In the Commission's view, it is necessary and expedient to penalize Roxana Amjad and her associates for the said failure to comply with securities laws and regulations, in the interest of capital market order, transparency and public interest. Therefore, the Commission, in consideration of the said matters, imposed a fine of Tk. 25 lakhs on Roksana Amjad and her associates under the powers conferred by Section 22 of the Securities and Exchange Ordinance, 1969. Within 30 days of the issuance of this order, the deposit should be paid through a bank draft or pay order issued in favor of the Bangladesh Securities and Exchange Commission. Otherwise further legal action will be taken as per securities laws.
According to the information, Roksana Amjad and her associates traded shares from brokerage houses BD Sunlife Securities, NLI Securities and NCCB Securities and Financial Services, members of the capital market, in the share manipulation of Global Insurance. Amjad Hussain Fakir and his associate (Roxana Amjad) traded Global Insurance shares through 4 BO accounts in BD Sunlife Securities and NLI Securities. This includes the joint account of Amjad Hussain Fakir and Roksana Amjad (Client Code-32001 and BO ID-1205670028409476) with BD Sunlife Securities. Amjad Hussain Fakir has a single BO account (Client Code-32006 & BO ID-1205670023493491) with the same brokerage house. Apart from this, Roksana Amjad has a single BO account (Client Code-4313 & BO ID-1205670062195657) with BD Sunlife Securities. And Amzad Hussain Fakir and Roksana Amzad have BO accounts (Client Code-01761 and BO ID-12057200284094) with NLI Securities.
Amjad Hussain Fakir and his associate (Roksana Amjad) purchased 1.897 thousand 340 shares in Global Insurance during the period from April 5 to June 14, 2021 through BO accounts of BD Sunlife Securities, NLI Securities Limited and NCCB Securities and Financial Services. And during that period they sold a total of 42 lakh 40 thousand 35 shares. They collectively accounted for 2.34 percent of the company's total trading during that period of manipulation. By buying and selling the company's shares through this transaction, they have withdrawn the profit of 1 crore 13 lakh 86 thousand 69 taka or 58.33 percent, which is not against the securities law. And at that time the unearned profit of the cycle was 2 crore 14 lakh 70 thousand 353 taka.
Section 17 of the Securities and Exchange Ordinance, 1969 states that no person shall directly or indirectly induce, refuse, influence, prevent or in any way influence or alter the benefit of the sale or purchase of any shares.
Section 17 (e) (5) of the Ordinance 1969 states, directly or indirectly affects a series of transactions in any share by taking an active role in it or by inducing the purchase of the share by others to increase its price or to induce the sale of the same by others. Price cannot be reduced for
But the investigation report found that Roksana Amjad and her accomplice (Amjad Hussain Fakir) violated Section 17 (e) (5) of the Securities and Exchange Ordinance 1969 by directly or indirectly engaging in a series of transactions in the shares of Global Insurance.
Explanation of Roksana Amjad and Amjad Hussain Fakir in the hearing
Meanwhile, in the BSEC hearing, both Roksana Amjad and Amjad Hossain Fakir claimed that they have been investing in the capital market for more than 15 years. They said, as part-time investors, they have invested in compliance with all laws, rules, regulations and instructions of the commission. Roksana Amjad's account is managed by husband Amjad Hussain Fakir. He has a single and 2 joint BO accounts. And Amjad Hussain Fakir has 4 BO accounts (single and joint). Both of them, unfortunately, did not realize the total realized gain (profit) on the company's share trading. Therefore, in future, be more careful and such mistakes will not be repeated again.
When asked about this, Executive Director and Spokesperson of BSEC Mohammad Rezaul Karim told Ajker newspaper, 'Investigating the accused, evidence of share manipulation of Global Insurance was found. Due to which the enforcement department has fined them as per law. Later, according to the rules, fines will be collected from their work.
