The Bangladesh Securities and Exchange Commission (BSEC) has ordered a fresh enquiry into suspected insider trading and share manipulation involving United Power Generation & Distribution Company (UPGDCL), Khulna Power Company (KPCL) and other securities.
The regulator will also investigate whether beneficiary owner (BO) accounts held in other people's names were used to conceal the true owners of shares and trading proceeds.
BSEC issued a revised enquiry order on Wednesday, replacing its September 16 order, according to a document provided to Daily Waadaa.
A three-member team, led by BSEC Director Mohammad Shamsur Rahman, has been given 60 working days to submit its findings. Joint Director Ziaur Rahman and Assistant Director Ali Ahsan are the other members.
The order names United Group Chief Adviser Hasan Mahmood Raja and United Enterprise & Co Ltd (UECL) Chairman Moinuddin Hasan Rashid in connection with the allegations.
The enquiry was initiated following applications by MM Habibullah and Nuruzzaman Zinnah.
At the centre of the investigation is whether BO accounts opened in other people's names were used to trade UPGDCL, KPCL and other shares while concealing their actual beneficial owners.
Investigators will identify relevant BO, trading and bank accounts belonging to the complainants as well as their businesses, relatives, employees and associates. Accounts linked to other people or entities connected with UECL will also come under scrutiny.
The team will seek to establish who actually operated or controlled the accounts — and who ultimately benefited from them.
Investigators have also been asked to follow the money.
They will trace the source and movement of funds used to buy securities, including alleged transfers from UECL or people and entities linked to the company.
The movement of shares, dividends and other proceeds will similarly be tracked to identify their ultimate recipients.
BSEC will examine whether the trading showed signs of artificial, coordinated, fraudulent or manipulative activity.
A separate part of the probe will focus on potential insider trading. Investigators will determine whether anyone involved possessed, communicated or acted on material non-public information and, if so, identify its source.
The roles of Hasan and Moinuddin will be examined alongside those of Habibullah, Nuruzzaman and other connected people or entities.
BSEC will also scrutinise records held by stockbrokers, banks, Central Depository Bangladesh Limited (CDBL) and other intermediaries. These will include records of account openings, trades, movement of money and securities, and transfers of dividends and other proceeds.
The enquiry will ultimately determine whether the transactions violated securities laws covering insider trading, market manipulation, fraudulent or deceptive practices, unauthorised use of accounts and concealment of beneficial ownership.