The securities regulator has imposed a penalty of Tk 2.0 million on a former deputy manager of Alltex Industries and his wife for making profits from the company's shares using 'undisclosed' price sensitive information.
As per another regulatory decision, the managing director, company secretary and all directors, other than independent and nominated ones, of Delta Life Insurance Company Limited will have to pay a penalty of Tk 0.2 million each for manipulating the company's share price through 'false' declaration.
The decisions were taken at a commission meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) recently.
According to BSEC information, Md. Nazul Islam was a deputy manager of Alltex Industries during 2004-05. Islam was also an assistant manager of Alltex Spinning, which is owned by Alltex Industries, during 2005-16.
Mr. Islam earned a profit of above Tk 3.19 million by purchasing shares of Alltex Industries on the basis of the company's 'undisclosed' price sensitive information. The share transactions were conducted through the BO (Beneficiary owner's) account of Mr. Islam's wife Mrs. Shamima Nazrul.
"The regulator fined Mr. Nazrul and his wife of Tk 1.0 million each for making profits using undisclosed price sensitive information," said the securities regulator.
The BSEC has also fined all directors, managing director and company secretary of Delta Life Insurance Company Limited (DLICL) as they had not purchased shares of Delta BRAC Housing Limited (DBH) as per declaration.
According to declaration, DLICL was supposed to purchase 1.0 million shares of DBH.
The DBH share price then rose 15 per cent as others were allured following the declaration of share purchase by DLICL.
But the securities regulator found that DLICL purchased only 3,31,500 shares of DBH.
"The decision of purchasing substantial shares was taken at a board meeting of DLICL. But the company had not disclosed the decision as price sensitive information," said the securities regulator.
The managing director, company secretary and all directors, other than independent and nominated ones, will have to pay a penalty of Tk 0.2 million for breaching securities rules, said the securities regulator.
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