The Financial Express

1996 share market scam: Tribunal acquits eight businessmen, two cos

| Updated: February 02, 2018 18:16:58

Evaly and Fianancial Express Evaly and Fianancial Express
FE file photo used for representation. FE file photo used for representation.

The special tribunal on capital market acquitted eight businessmen and two companies in two cases related to 1996 stock market scam on Thursday, jurists said.

Earlier, the cases were filed against them following the probe report on the scam submitted to the securities regulator.

According to lawyer of Bangladesh Securities and Exchange Commission (BSEC), both the cases were filed against the accused for unlawful transactions of shares.

The tribunal said in its verdict that the accused were released as their involvement in manipulation with unlawful transactions was not proved, said BSEC lawyer Advocate Masud Rana.

One case was related to 'unlawful' share transactions conducted through a merchant bank, namely HMMS Financial Consultancy & Securities.

The acquittals of the case of HMMS are Hemayet Uddin Ahmed, Mostaque Ahmed Sadeque, Syed Mahbub Murshed, Sharif Ataur Rahman and Ahmed Iqbal Hasan.

These five members of the Dhaka Stock Exchange (DSE) were the shareholders of the HMMS Financial Consultancy & Securities.

After the verdict, Mr Sadeque, also the incumbent president of DSE Brokers Association, said that a firm namely HMMS Financial Consultancy & Securities was formed before 1996 stock market scam to conduct the operations of a merchant bank.

"No share transaction was conducted through HMMS Financial Consultancy & Securities as this merchant bank had no licence then. But the case was filed against us for conducting unlawful share transactions through delivery versus payment (DVP)," he said.

He said the tribunal finally released them as the allegation brought against them was not proved.

Of the acquittals, Hemayet Uddin Ahmed was the chairman of Dhaka Stock Exchange (DSE). Ahmed Iqbal Hasan was also the chairman and president of the premier bourse.

On completion of the hearing of another case related to Securities Consultant Limited, the tribunal also acquitted MJ Azam Chowdhury, Professor Mahbub Ahmed and Mr. Shahidullah.

The securities regulator filed the case against them for conducting unlawful share transactions through DVP.

The BSEC officials concerned could not be reached for comments, but its lawyer said the BSEC would appeal against the verdict after receiving certified copy of the verdict.

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