The Bangladesh Securities and Exchange Commission (BSEC) has fined 12 individuals a total of Tk 35.55 crore for stock manipulation in Safco Spinning Mills Limited, a company listed in the textile sector, in the capital market.

From May 2 to June 20, 2021, they colluded with each other to increase the price of the company's shares and profit through series trading. During that period, i.e. 1 month and 18 days, the company's share price increased by 215 percent. In view of such allegations, after a long investigation, those involved in the manipulation have been identified and punished.

Recently, the new commission led by BSEC Chairman Khandaker Rashed Maqsood has taken such a decision. BSEC officials, who do not want to be named, confirmed this information to Risingbd.com.

In May and June 2021, there were rumors in the capital market that there was manipulation in the shares of Safco Spinning Mills. The share price has been increased not because of the improvement in the company's business and financial condition, but through manipulation. During the previous government's tenure, no strict action was taken against share manipulation that violated the law. However, after the change in the political landscape, the new commission led by Khandaker Rashed Maqsood of the reconstituted BSEC has taken strict action against any kind of manipulation.

According to the commission sources, 12 people have been fined for manipulating the share price of Safco Spinning Mills between May 2 and 20, 2021. Of these, Md. Sajib Hossain was fined Tk 1.34 crore, Md. Suleman was fined Tk 6.6 lakh, Md. Sharif was fined Tk 3.3 lakh, Taslima Begum and Md. Sajib Hossain were fined Tk 2.7 lakh, Md. Abdul Quddus Amin was fined Tk 2.7 lakh, AKM Khalilur Rahman was fined Tk 2.4 lakh, Nurunnesa Saki was fined Tk 1.9 lakh, Md. Belal Hossain has been fined a total of 9 lakh taka, Arifa Begum Lucky has been fined 8 lakh taka, Tarannum Shafi has been fined 4 lakh 50 thousand taka, Mahmuda Akhter has been fined 2 lakh taka and Kazi Mohiuddin Ahmed has been fined 2 lakh taka. Accordingly, the accused have been fined a total of 3 crore 55 lakh 50 thousand taka.

Identification of those involved in the fraud
In the share fraud of Safco Spinning Mills, Md. Sajib Hossain, Md. Suleman, Md. Sharif, Taslima Begum, Md. Abdul Quddus Amin, AKM Khalilur Rahman, Nurunnesa Saki, Md. Belal Hossain, Arifa Begum Lucky, Tarannum Shafi, Mahmuda Akhter and Kazi Mohiuddin Ahmed have embezzled a huge amount of money. The share fraud was led by share traders Md. Sajib Hossain and Md. Suleman. And all their collaborators are share traders. They increased the share price of the company through series trading.

BSEC investigation activities
From May 2 to June 20, 2021, the share price of Safco Spinning Mills was increased through series trading in collusion. During the period in question, the manipulation circle increased the share price of the company from a minimum of 10 taka to a maximum of 31.50 taka. As a result, the share price of the company increased by 21.50 taka or 215 percent during the period in question. In view of various allegations, the BSEC investigation has finally proven it after a long time.

BSEC decision
The accused deliberately created an artificial market by manipulating the shares of Safco Spinning Mills in violation of the Share Act from May 2 to June 20, 2021 and made an attempt to influence the general investors of the capital market. The allegations presented are correct and intentional and as a result of these activities, the general investors of the capital market have been harmed, which is contrary to the development of the capital market. Therefore, the explanation of the accused was not considered acceptable by the Commission. The accused have violated Sections 17(E)(2), 17(E)(5) of the Securities and Exchange Ordinance, 1969 and the Bangladesh Securities and Exchange Commission (Acquisition, Acquisition and Taking Over of Significant Number of Shares) Rules, 2028 for such unethical activities, which is a punishable offense under the Securities Act. Therefore, the accused persons are fined under the powers conferred by Section 22 of the Securities and Exchange Ordinance, 1969. The amount should be deposited through a bank draft or pay order issued in favor of the ‘Bangladesh Securities and Exchange Commission’ within 30 days of the issuance of this order, otherwise further legal action will be taken as per the Securities Act.

Company's Financial Situation
Safco Spinning Mills was listed in the capital market in 2000. The paid-up capital of this 'Z' category company is 299.82 million taka. Accordingly, the total number of shares of the company is 299.81 thousand 716. As of July 31, 2025, the company's entrepreneur directors hold 30 percent, institutional investors hold 7.08 percent, and general investors hold 62.92 percent. After reviewing the audited financial report for the financial year ended June 30, 2022, the company's board of directors has declared a 2 percent cash dividend for the shareholders. Since then, the company has not declared any more dividends. The last transaction was on Monday (September 8) at 16.20 taka.