BSEC Investigates Eight Suspicious BO Accounts

 Allegations of market manipulation have surfaced against eight BO (Beneficiary Owners) accounts operated under stock market intermediary merchant bank Southeast Bank Capital Services Limited and individuals linked to those accounts. To examine the allegations of possible manipulation, the regulator, Bangladesh Securities and Exchange Commission (BSEC), has launched a fresh inquiry and investigation.

To protect the interests of the stock market and general investors, the regulator has formed a three-member investigation committee to examine transactions conducted through specific client codes and BO accounts under the intermediary institution. The committee has been instructed to complete the inquiry within 60 working days and submit a full report to the commission. Based on the findings, authorities will later take legal action against any individual or institution found responsible.

According to relevant sources, the Inquiry and Investigation Department under BSEC’s Market Intelligence and Investigation Division recently issued an order in this regard.

BSEC also sent the investigation order to the managing director of Southeast Bank Capital Services Limited.

The committee consists of BSEC Additional Director Mohammad Rakibur Rahman, Assistant Director Lamia Akter, and Md. Atikullah Khan.

BSEC Investigation Order

BSEC believes that, in the greater interest of the stock market and general investors, it is necessary to identify other account holders linked to client codes S11294, S11318, S11325, S20213, S20071, S11118, S11326, and S30005 under Southeast Bank Capital Services Limited, and investigate possible market manipulation carried out through those BO accounts.

Accordingly, exercising powers granted under Section 21 of the Securities and Exchange Ordinance, 1969, and Section 17(a) of the Bangladesh Securities and Exchange Commission Act, 1993, the commission ordered the formation of a three-member inquiry and investigation committee.

What the Investigation Will Examine

The investigation committee will identify other account holders linked to the eight client codes. At the same time, it will examine share transactions conducted through those accounts, BO account activities, sources of funds, and possible collusion among the individuals involved.

Market insiders said the regulator has recently intensified monitoring over unusual price hikes and trading activity involving shares of certain companies. In particular, intelligence surveillance has increased to detect coordinated share trading, artificial price inflation aimed at misleading investors, and activities by dishonest syndicates.

Responding to questions on the matter, BSEC Director and spokesperson Md. Abul Kalam told Agamir Somoy, “Following various allegations, BSEC has formed an inquiry and investigation committee to identify beneficiaries linked to different client codes under Southeast Bank Capital. The committee will examine the validity of the allegations. If the investigation finds any irregularities, the commission will take necessary action accordingly. The commission’s main objective is to uncover irregularities through the investigation process and maintain discipline and investor confidence in the stock market.”