The Bangladesh Securities and Exchange Commission (BSEC) recently fined investors AG Mahmud and Md Saif Ullah for manipulating Index Agro Industries Limited’s share price, marking their second offense in a year and a half. The share price of Index Agro Industries Limited saw significant fluctuations without any price-sensitive information, rising 145% in just a few months from Tk 60 in May 2021. Then again, its share price rose from its floor price at Tk 90 to Tk155 in April 2022 without any valid reason.
Therefore, the commission imposed a total fine of Tk55 lakh, with AG Mahmud fined Tk25 lakh and Md Saif Ullah Tk30 lakh. The violation occurred in the second week of March with the specific manipulation tactics not being disclosed. Previously, in October 2022, both investors were fined for similar misconduct. The company, established in 2000, raised Tk50 crore through an IPO for expansion but is yet to utilize Tk9 crore of the funds as intended by February, a year ago.
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