Stock market manipulators face scrutiny, but justice remains elusive

Names of those involved in stock market manipulation in Bangladesh continue to emerge.

Since the 2010 market crash, Salman F Rahman—often dubbed the “saint of the stock market”—has remained one of the most notorious figures.

Over time, the list has expanded to include individuals such as Abul Khair Hiru and his family, as well as cricketer-turned-MP Shakib Al Hasan. Nearly fifty smaller manipulators are now publicly labeled as the market’s “big sharks.”

These syndicates, operating under the previous Awami League government, allegedly embezzled hundreds of crores of taka through manipulation. Their actions occurred openly, with the Bangladesh Securities and Exchange Commission (BSEC) failing to intervene effectively. Rather than ensuring accountability, the regulatory authority issued only token fines—effectively legitimising illegal practices.

Following the Awami League’s departure from power on 5 August, the interim government restructured the BSEC and appointed former banker Khondoker Rashed Maqsood as its new chairman. Since then, the commission has held 35 meetings and imposed over Tk700 crore in fines. Yet, no fines have been collected so far.

By contrast, between January and August last year, then-chairman Shibli Rubayat Ul Islam held only four commission meetings, mostly to approve fundraising via new share issues and a few bonds.

According to market analysts, most of those fined under the new commission have close ties to the former ruling party. The list includes prominent business figures, politicians, and others who had previously operated with impunity.

Abu Ahmed, chairman of the state-owned Investment Corporation of Bangladesh (ICB) and a former professor of economics at Dhaka University, alleged that the stock market was systematically looted under the former administration.

“Top officials at BSEC and the DSE collaborated with major manipulators,” he said. “For 15 years, the commission was used to benefit pro-Awami businesspeople. There was no accountability. Without political connections, no one could operate in the market. Investor interests were ignored.”

Ahmed called for continued efforts to bring manipulators to justice, emphasizing the importance of legal action.

ANM Ataullah Nayeem, president of the Investors United Council, echoed that sentiment. “Those responsible must face consequences, but so far, everything remains on paper,” he said. “Unless real punishment is enforced, this slow legal process will continue to damage investor confidence. Investors are increasingly cautious of companies linked to market irregularities.”

BSEC Executive Director and spokesperson Mohammad Rezaul Karim confirmed that the current commission is pursuing manipulators within the legal framework. “Anyone involved in looting through manipulation will be brought under the law,” he said.

Key figures exposed

The first case pursued by the new BSEC leadership involved manipulation in the share trading of Imam Button (now Hami Industries). The company’s managing director was fined Tk1 crore—the first penalty issued under the restructured commission.

Under the previous commission led by Shibli Rubayat Ul Islam, Abul Khair Hiru gained a reputation as a major manipulator. Although his name surfaced repeatedly before 5 August, no substantial action was taken. His entire family was allegedly involved. In 2022, he was fined Tk14 crore, which was never collected. He was even given extra time to pay.

On 5 December, the new commission imposed a Tk134.59 crore fine on Hiru and his family. When they sought another year to pay, the commission rejected the appeal and filed a lawsuit against them.

Cricketer and Magura-1 MP Shakib Al Hasan also faced penalties for stock manipulation. Following the 5 August restructuring, the BSEC removed him from his role as goodwill ambassador for its investor education program.

Shakib reportedly made a profit of Tk90 lakh by manipulating shares of Paramount Insurance Company, investing Tk7 crore over just three days—causing losses for other investors. He was fined Tk50 lakh.

The largest fine in the history of Bangladesh’s stock market was levied against Beximco Limited. For manipulating shares, four individuals and five institutions were fined a total of Tk428.52 crore.

The commission also launched special audits into five years of financial activities at Beximco Limited, Beximco Pharmaceuticals, and Shinepukur Ceramics—all part of the Beximco Group. Group Vice Chairman Salman F Rahman, who previously served as the Prime Minister’s Adviser for Private Sector Development, is now in jail.

Other fines include: Bay Leasing (four individuals/institutions fined Tk19.55 crore), Bangladesh Finance (BD Finance) (nine individuals/institutions fined Tk70.57 crore), Sonali Paper and Board Mills Ltd (three individuals fined Tk60 lakh), and Paramount Insurance Company (the managing director and two other directors fined Tk20 lakh each, total Tk60 lakh).

BSEC also found evidence of manipulation in the shares of 11 companies, including Orion Pharma and Orion Infusion.