Dhaka Bureau: The Ministry of Finance has ordered the formation of two investigation committees against the Independent Director of Dhaka Stock Exchange (DSE), Abdullah Al Mahmud, on allegations of share manipulation, knowing the company’s secret information in advance, and illegally engaging in share trading.
The Ministry of Finance has asked to take action against Abdullah Al Mahmud based on the report after completing the investigation within 30 working days. At the same time, he has been ordered not to perform the duties of the director of DSE during the investigation. This information was revealed in a letter signed by Farida Yasmin, Deputy Secretary of the Financial Institutions Department of the Ministry of Finance, on Tuesday, June 25.
The letter mentions, “The director of DSE is involved in share manipulation, while the protector is the eater.” As mentioned in the report, the influential member of the board of directors of the Dhaka Stock Exchange, Professor Dr. Abdullah Al Mahmood, transacted shares worth Tk 13.15 million in 3 BO accounts through manipulation in violation of rules. And it is said that he has committed three crimes through this work. First, he took advantage of the board of the stock exchange by trading shares illegally and unethically. Second, most of the companies that have been penalized for manipulation have taken advantage by trading their shares. Thirdly, he has benefited from share trading with advance knowledge of all the companies that were taken over with the help of the regulatory body.
The newspaper also mentioned in the report that Abdullah Al Mahmoud, being the director of DSE, exploited the confidential information of the company and created a crisis of confidence in the capital market, and as a result, the image of the government was damaged.
Professor in the letter. The Bangladesh Securities and Exchange Commission has been asked to investigate Abdullah Al Mahmud under Section 21 of the Securities and Exchange Ordinance, 1969, within 30 working days and take action based on the investigation report. These include Dhaka Stock Exchange (DSE) Individual Directors Section 8 (2) (a), 8(2)(b), 8(2)(d), and 8(3) of the Dhaka Stock Exchange (Board Administration) Resolution 2023 (1). Including BSEC and other laws, rules, regulations, or instructions followed by the Dhaka Stock Exchange and taking action according to the report, Abdullah Al Mahmud was removed from his duties during the investigation. According to the investigation report of the Bangladesh Securities and Exchange Commission and Dhaka Stock Exchange, the Bangladesh Securities and Exchange Commission should immediately take the necessary measures and inform the Financial Institutions Department.
However, despite not receiving the letter from the ministry, DSE is already investigating the share manipulation.
Hasan Hafizur Rahman, chairman of the board of directors of DSE, said that he has not yet received the letter from the ministry. We have started the investigation. The investigation will be done with transparency, and after the investigation is over, we can talk about it in detail.
In accordance with the demutualization (separation of ownership from management) law of the stock exchange in February of last year, the professor of banking and insurance at Dhaka University. Abdullah Al Mahmood was appointed as the independent director of DSE by the government.
