Written by The Banking Post
The Financial Institutions Division (FID) has asked the Bangladesh Securities and Exchange Commission (BSEC) to submit a detailed list of Investment Corporation of Bangladesh (ICB) employees allegedly involved in manipulating the share price of Fortune Shoes Ltd.
The request follows an investigation report sent by the market regulator, which found that Md Abul Khayer (Hero), a deputy controller at the Department of Cooperatives, colluded with certain ICB officials to inflate the stock price. The report said ICB later bought the shares at manipulated prices, resulting in substantial financial losses for the state-run institution.
While the investigation outlined the scheme, it stopped short of naming the ICB officials involved or specifying their positions. Officials said the absence of clear identities has prompted the FID to seek further details so punitive action can be pursued against those responsible.
The alleged manipulation took place between July 2017 and September 2022, according to a BSEC investigation committee formed after the fall of the previous government.
A BSEC spokesperson earlier said some ICB officials overseeing the company’s portfolio had aided the manipulators. “They facilitated the manipulation and the exit of the manipulators, causing losses to the state-run entity,” he said.
