The actions followed a Dhaka Stock Exchange (DSE) investigation into Rahima Food’s share trading between 15 June and 27 August 2025.
TBS Report
13 October, 2026, 09:45 pm
Last modified: 13 October, 2026, 09:51 pm
The Bangladesh Securities and Exchange Commission (BSEC) has imposed a combined fine of Tk20 lakh on an investor and an insider of Rahima Food Corporation Limited for alleged stock price manipulation through wash trading and insider trading during a restricted period.
In two separate enforcement orders issued on 11 October, signed by BSEC Commissioner Nahid Mahtab, the regulator fined investor Md Delwar Hossain Tk10 lakh for wash trading and company official Md Sholayman Tk10 lakh for insider trading.
The actions followed a Dhaka Stock Exchange (DSE) investigation into Rahima Food's share trading between 15 June and 27 August 2025, when the company's share price surged 104.93% to Tk141.20 from Tk68.90.
The investigation found that Delwar Hossain conducted circular transactions between his own beneficiary owner (BO) accounts maintained with NRBC Bank Securities and Sheltech Brokerage.
On 29 July 2025, he traded 2,086 shares of Rahima Food at Tk134 each between the two accounts, executing a wash trade that did not change beneficial ownership, in violation of the Securities and Exchange Ordinance, 1969.
The BSEC rejected his defence that the transaction resulted from a technical oversight, concluding that the market manipulation was intentional.
In a parallel finding, the regulator penalised Md Sholayman, VAT in-charge at Rahima Food, alongside his wife, Nazma Begum, for breaching the BSEC (Prohibition of Insider Trading) Rules, 2022. The couple actively traded the company's stock during the mandatory blackout period, running from 1 May 2025 until the adoption of audited financial statements for FY25, buying 12,409 shares and selling 10,254 shares to lock in a realised profit of Tk2.49 lakh. The commission turned down Sholayman's plea claiming ignorance of insider trading regulations as a general employee.
BSEC directed both individuals to deposit their respective Tk10 lakh fines via bank draft or pay order within 30 days, warning that failure to comply would lead to legal recovery proceedings.