Govt to make further probe into share scam: Muhith

Report made public; seen as prepared basing on assumptions

Finance Minister A M A Muhith speaking at a press conference in the city Saturday. — FE Photo

FE Report

The government will make a further investigation into the recent share market scam as the
report of the Ibrahim Khaled-led committee has been found to be based on assumptions rather
than facts, Finance Minister AMA Muhith told the reporters Saturday.

The Finance Minister said this at his secretariat office while making officially the report of
four-member probe committee public.

He said the government is officially releasing the probe committee report without any kind of
editing.

The probe committee was earlier formed January 26 under some specific terms of references
(ToR) following a severe fall in the prices of the share prices in the stock market.

The committee submitted its 284 pages report to the government on April 7.

Mr Muhith said: "The report had been prepared, being based on some assumptions. Such a report
is not sufficient to bring allegations against any foul game by share traders. We consider that it
needs more detailed investigations."

He said it not desirable to go for any character assassination merely on assumptions.

He also said: "The government does not want the genuine 'culprits' to evade the laws of the
land."

The Finance Minister said the government will form a task force to help translate different
recommendations, made by the probe committee, into some real actions.

This task force will not only monitor and evaluate the recommendations of the probe report but
also look after the restructuring process of the capital market, Mr Muhith added.

"We're expecting to announce the terms of reference and composition of the task force shortly,"
he added.

He said: "We do not believe the capital market regulator, Securities and Exchange Commission
(SEC), had totally failed to tackle the situation."

He said there was a lack of coordination among all concerned agencies including Bangladesh
Bank, the SEC and stock exchanges.
He said: "We've to stop lack of coordination. For this, we're taking institutional measures with
the central bank, SEC and stock exchanges to help avert such a situation."

The Finance Minister said the probe committee had recommended to investigate further into
many more issues relating to share market scam, adding: "The government is also following their
instructions."

Mr Muhith said the Ibrahim Khaled-led committee identified criminal offences involving two
aspects of things. "The government is following their recommendations as well," he added.

"The government has already acted upon some of the recommendations made by the probe
committee and measures in other areas are also under consideration," Mr Muhith told the
reporters.

He also said: "The country's stock exchanges will be demutualised shortly in accordance with the
recommendation of the probe committee."

"We are making a roadmap for demutualisation of the stock exchanges through consultations
with all stakeholders," he added.

He said: "We're expecting that the process of demutualisation will begin in the next fiscal."

Muhith, however, said the SEC should be restructured to bring confidence among the investors.
"We're working on it."

The Finance Minister said a massive campaign is necessary to raise the level of awareness
among the investors.

"This is a very risky area. Here both profits and losses can occur. For this, it needs right and
prudent decisions," he noted.
Sunday, May 1, 2011
Front Page

Govt to recast SEC

Makes public unedited stock crash probe report; Muhith says report much relied on
speculation
 Rejaul Karim Byron and Md
Fazlur Rahman
The government will restructure the core team of the Securities and Exchange Commission with
the appointment of a new chairman, in efforts to restore investors' trust in the stockmarket
regulator.
It will file lawsuits against those who, according to the probe report, had links to market
manipulation, and ask the Anti-Corruption Commission to investigate allegations of market
manoeuvring against two government officials.
The decisions came yesterday right after the government published the original version of the
much-talked-about report on stockmarket scam, burying concerns that the names of some
influential suspects might be dropped from it.
Finance Minister AMA Muhith made public the report prepared by the government probe
committee, headed by Khondker Ibrahim Khaled. The report has been posted on the ministry
website www.mof.gov.bd.
"There had been a widespread debate over the report's publication. So, the government has
published it without making any change," said the minister at a press conference in his office in
the capital.
He also came up with a 15-page statement on the report outlining government observations and
steps it will take to keep the market stable.
The government will implement 36 recommendations in phases and marked 14 of them for
further investigation. The probe committee has made 25 recommendations and the government
added 11 more to protect interests of investors.
In the statement, the government said it will conduct a further investigation and take action
through the SEC against people involved in serial trading and manipulation.
Muhith said the government delayed the report's publication for its evaluation and exchanging
views with experts. Khaled, also chairman of Bangladesh Krishi Bank, submitted the report to
the finance ministry on April 7.
The government will replace Ziaul Haque Khondaker, whom the report blamed for market
volatility, within a few days.
The two SEC members will leave "in due time", he said.
"People have no faith in the SEC. So we need to restructure the whole board," said Muhith.
The government will form a taskforce to supervise implementation of the probe committee's
recommendations.
"The taskforce will oversee implementation of the recommendations and also evaluate the
reform activities," he said.
The terms of reference and composition will be announced soon, the minister said.
The public statement said the committee has identified criminal offences against Syed Siraj
Uddowla, Abu Sadat Md Sayem and Abdul Mobin Molla.
The government will file criminal cases against them, said Muhith.
It will ask the ACC to investigate further the allegations of market manipulation against SEC
Executive Director Anwarul Kabir Bhuiyan and House Building Finance Corporation General
Manager Kafil Uddin Ahmad Chowdhury.
The new SEC chairman has already been selected but Muhith declined to disclose the person's
name saying no agreement has been signed yet.
The statement said the assets of some companies including Shinepukur Ceramics, BD Thai
Aluminium will be examined and they will face action if any irregularity is found.
The Criminal Investigation Department will probe the assets of BD Thai Aluminium and Gem
Global.
The report has mentioned some names for their involvement in market manipulation and made
recommendations against them on the basis of perception. But charges cannot be brought against
anyone on the basis of such recommendations, the statement said.
"It requires further investigation. It is undesirable to malign someone on the basis of perception.
At the same time, the government does not want any market manipulator to slip through any
loopholes in the law," Muhith said.
"The government does not accept the committee's opinion
Sunday, May 1, 2011
Front Page

Govt to recast SEC

Makes public unedited stock crash probe report; Muhith says report much relied on
speculation
 Rejaul Karim Byron and Md
Fazlur Rahman
The government will restructure the core team of the Securities and Exchange Commission with
the appointment of a new chairman, in efforts to restore investors' trust in the stockmarket
regulator.
It will file lawsuits against those who, according to the probe report, had links to market
manipulation, and ask the Anti-Corruption Commission to investigate allegations of market
manoeuvring against two government officials.
The decisions came yesterday right after the government published the original version of the
much-talked-about report on stockmarket scam, burying concerns that the names of some
influential suspects might be dropped from it.
Finance Minister AMA Muhith made public the report prepared by the government probe
committee, headed by Khondker Ibrahim Khaled. The report has been posted on the ministry
website www.mof.gov.bd.
"There had been a widespread debate over the report's publication. So, the government has
published it without making any change," said the minister at a press conference in his office in
the capital.
He also came up with a 15-page statement on the report outlining government observations and
steps it will take to keep the market stable.
The government will implement 36 recommendations in phases and marked 14 of them for
further investigation. The probe committee has made 25 recommendations and the government
added 11 more to protect interests of investors.
In the statement, the government said it will conduct a further investigation and take action
through the SEC against people involved in serial trading and manipulation.
Muhith said the government delayed the report's publication for its evaluation and exchanging
views with experts. Khaled, also chairman of Bangladesh Krishi Bank, submitted the report to
the finance ministry on April 7.
The government will replace Ziaul Haque Khondaker, whom the report blamed for market
volatility, within a few days.
The two SEC members will leave "in due time", he said.
"People have no faith in the SEC. So we need to restructure the whole board," said Muhith.
The government will form a taskforce to supervise implementation of the probe committee's
recommendations.
"The taskforce will oversee implementation of the recommendations and also evaluate the
reform activities," he said.
The terms of reference and composition will be announced soon, the minister said.
The public statement said the committee has identified criminal offences against Syed Siraj
Uddowla, Abu Sadat Md Sayem and Abdul Mobin Molla.
The government will file criminal cases against them, said Muhith.
It will ask the ACC to investigate further the allegations of market manipulation against SEC
Executive Director Anwarul Kabir Bhuiyan and House Building Finance Corporation General
Manager Kafil Uddin Ahmad Chowdhury.
The new SEC chairman has already been selected but Muhith declined to disclose the person's
name saying no agreement has been signed yet.
The statement said the assets of some companies including Shinepukur Ceramics, BD Thai
Aluminium will be examined and they will face action if any irregularity is found.
The Criminal Investigation Department will probe the assets of BD Thai Aluminium and Gem
Global.
The report has mentioned some names for their involvement in market manipulation and made
recommendations against them on the basis of perception. But charges cannot be brought against
anyone on the basis of such recommendations, the statement said.
"It requires further investigation. It is undesirable to malign someone on the basis of perception.
At the same time, the government does not want any market manipulator to slip through any
loopholes in the law," Muhith said.
"The government does not accept the committee's opinion that the SEC has completely failed to
regulate the stockmarket. The government thinks that the other stakeholders did not take steps on
time."
that the SEC has completely failed to regulate the stockmarket. The government thinks that the
other stakeholders did not take steps on time."
Sunday, May 1, 2011
Front Page

Govt to recast SEC

Makes public unedited stock crash probe report; Muhith says report much relied on
speculation
 Rejaul Karim Byron and Md
Fazlur Rahman
The government will restructure the core team of the Securities and Exchange Commission with
the appointment of a new chairman, in efforts to restore investors' trust in the stockmarket
regulator.
It will file lawsuits against those who, according to the probe report, had links to market
manipulation, and ask the Anti-Corruption Commission to investigate allegations of market
manoeuvring against two government officials.
The decisions came yesterday right after the government published the original version of the
much-talked-about report on stockmarket scam, burying concerns that the names of some
influential suspects might be dropped from it.
Finance Minister AMA Muhith made public the report prepared by the government probe
committee, headed by Khondker Ibrahim Khaled. The report has been posted on the ministry
website www.mof.gov.bd.
"There had been a widespread debate over the report's publication. So, the government has
published it without making any change," said the minister at a press conference in his office in
the capital.
He also came up with a 15-page statement on the report outlining government observations and
steps it will take to keep the market stable.
The government will implement 36 recommendations in phases and marked 14 of them for
further investigation. The probe committee has made 25 recommendations and the government
added 11 more to protect interests of investors.
In the statement, the government said it will conduct a further investigation and take action
through the SEC against people involved in serial trading and manipulation.
Muhith said the government delayed the report's publication for its evaluation and exchanging
views with experts. Khaled, also chairman of Bangladesh Krishi Bank, submitted the report to
the finance ministry on April 7.
The government will replace Ziaul Haque Khondaker, whom the report blamed for market
volatility, within a few days.
The two SEC members will leave "in due time", he said.
"People have no faith in the SEC. So we need to restructure the whole board," said Muhith.
The government will form a taskforce to supervise implementation of the probe committee's
recommendations.
"The taskforce will oversee implementation of the recommendations and also evaluate the
reform activities," he said.
The terms of reference and composition will be announced soon, the minister said.
The public statement said the committee has identified criminal offences against Syed Siraj
Uddowla, Abu Sadat Md Sayem and Abdul Mobin Molla.
The government will file criminal cases against them, said Muhith.
It will ask the ACC to investigate further the allegations of market manipulation against SEC
Executive Director Anwarul Kabir Bhuiyan and House Building Finance Corporation General
Manager Kafil Uddin Ahmad Chowdhury.
The new SEC chairman has already been selected but Muhith declined to disclose the person's
name saying no agreement has been signed yet.
The statement said the assets of some companies including Shinepukur Ceramics, BD Thai
Aluminium will be examined and they will face action if any irregularity is found.
The Criminal Investigation Department will probe the assets of BD Thai Aluminium and Gem
Global.
The report has mentioned some names for their involvement in market manipulation and made
recommendations against them on the basis of perception. But charges cannot be brought against
anyone on the basis of such recommendations, the statement said.
"It requires further investigation. It is undesirable to malign someone on the basis of perception.
At the same time, the government does not want any market manipulator to slip through any
loopholes in the law," Muhith said.
"The government does not accept the committee's opinion that the SEC has completely failed to
regulate the stockmarket. The government thinks that
Sunday, May 1, 2011
Front Page

Govt to recast SEC

Makes public unedited stock crash probe report; Muhith says report much relied on
speculation
 Rejaul Karim Byron and Md
Fazlur Rahman
The government will restructure the core team of the Securities and Exchange Commission with
the appointment of a new chairman, in efforts to restore investors' trust in the stockmarket
regulator.
It will file lawsuits against those who, according to the probe report, had links to market
manipulation, and ask the Anti-Corruption Commission to investigate allegations of market
manoeuvring against two government officials.
The decisions came yesterday right after the government published the original version of the
much-talked-about report on stockmarket scam, burying concerns that the names of some
influential suspects might be dropped from it.
Finance Minister AMA Muhith made public the report prepared by the government probe
committee, headed by Khondker Ibrahim Khaled. The report has been posted on the ministry
website www.mof.gov.bd.
"There had been a widespread debate over the report's publication. So, the government has
published it without making any change," said the minister at a press conference in his office in
the capital.
He also came up with a 15-page statement on the report outlining government observations and
steps it will take to keep the market stable.
The government will implement 36 recommendations in phases and marked 14 of them for
further investigation. The probe committee has made 25 recommendations and the government
added 11 more to protect interests of investors.
In the statement, the government said it will conduct a further investigation and take action
through the SEC against people involved in serial trading and manipulation.
Muhith said the government delayed the report's publication for its evaluation and exchanging
views with experts. Khaled, also chairman of Bangladesh Krishi Bank, submitted the report to
the finance ministry on April 7.
The government will replace Ziaul Haque Khondaker, whom the report blamed for market
volatility, within a few days.
The two SEC members will leave "in due time", he said.
"People have no faith in the SEC. So we need to restructure the whole board," said Muhith.
The government will form a taskforce to supervise implementation of the probe committee's
recommendations.
"The taskforce will oversee implementation of the recommendations and also evaluate the
reform activities," he said.
The terms of reference and composition will be announced soon, the minister said.
The public statement said the committee has identified criminal offences against Syed Siraj
Uddowla, Abu Sadat Md Sayem and Abdul Mobin Molla.
The government will file criminal cases against them, said Muhith.
It will ask the ACC to investigate further the allegations of market manipulation against SEC
Executive Director Anwarul Kabir Bhuiyan and House Building Finance Corporation General
Manager Kafil Uddin Ahmad Chowdhury.
The new SEC chairman has already been selected but Muhith declined to disclose the person's
name saying no agreement has been signed yet.
The statement said the assets of some companies including Shinepukur Ceramics, BD Thai
Aluminium will be examined and they will face action if any irregularity is found.
The Criminal Investigation Department will probe the assets of BD Thai Aluminium and Gem
Global.
The report has mentioned some names for their involvement in market manipulation and made
recommendations against them on the basis of perception. But charges cannot be brought against
anyone on the basis of such recommendations, the statement said.
"It requires further investigation. It is undesirable to malign someone on the basis of perception.
At the same time, the government does not want any market manipulator to slip through any
loopholes in the law," Muhith said.
"The government does not accept the committee's opinion that the SEC has completely failed to
regulate the stockmarket. The government thinks that the other stakeholders did not take steps on
time."
the other stakeholders did not take steps on time."