Stock market fines total BDT 6.19 billion in 5 months, but not a single Taka collected yet

Despite slapping fines worth BDT 6.19 billion over the past five months for stock market manipulation, not a single taka has been collected so far.

The Bangladesh Securities and Exchange Commission (BSEC), which regulates the market, has said they are trying to recover the money through legal means.

However, experts are skeptical about the chances of recovery. 

They say the process is too slow and full of legal loopholes, making it difficult to collect the fines. Many believe the law needs to be changed so that manipulators face faster punishment.

Khondaker Rashid Maksud took over as the chairman of BSEC after the interim government came into power. Since then, the commission has been focused on bringing transparency and accountability to the stock market. 

One of their main goals has been identifying and punishing those involved in manipulating shares.

Following investigations, the BSEC found evidence of manipulation by several companies, including Orion Pharma and Orion Infusion. 

The commission responded by handing out a record BDT 6.19 billion in fines to the individuals and organizations involved.

As per the law, after the fines are issued, there is a 90-day window for revision. 

If the fines are upheld, those involved still have the option to take the matter to the High Court.

BSEC spokesperson Rezaul Karim explained the process: 

“If the commission upholds the fines in the review, the accused can file a writ petition in the High Court, which is a fundamental right. They can go that far. If the fine is not collected in the meantime, a certificate case is filed against them.”

Market experts warn that this slow legal process is hurting investor confidence. Investors are becoming wary of companies involved in manipulative activities. 

The fact that there has been no visible punishment for those responsible is making the situation worse.

Kawser Al Mamun, CEO of First Capital Securities, said, 

“The law needs to be changed. Fines should be imposed right from the start. We can see everything—who is engaging in circular trading, who is involved in frontline trading.”

A.N.M. Ataullah Nayeem, President of the Investors United Council, echoed similar concerns. 

“If a writ petition is filed in the High Court, it will delay the matter, leading to a lack of trust in the market among investors,” he said.

Despite the challenges, the BSEC has assured that they are working within the law to ensure fairness and accountability.

BSEC spokesperson Rezaul Karim added, 

“Legal compliance will be ensured. We believe that through this, transparency, accountability, and good governance will be further established in the market, which will increase investors’ confidence.”

Though it’s been nearly five months since the political change, the market is still shaky, and investor confidence continues to drop.