The intricate web of Bangladesh's
capital market has once again drawn sharp attention to the actions of Md. Abul
Khayer, a Deputy Registrar at the Department of Cooperatives, and his repeated
involvement in share manipulation, particularly concerning Crystal Insurance
Company Limited. Recent rulings by the Bangladesh Securities and Exchange
Commission (BSEC) and an ongoing Anti-Corruption Commission (ACC) case
highlight a pattern of alleged illicit activities that threaten market
integrity and investor confidence.
The BSEC's Stance: Fines and
Warnings
The Bangladesh Securities and
Exchange Commission has consistently taken enforcement actions against Abul
Khayer and his associates for their alleged role in share price manipulation
across various listed companies, including Crystal Insurance. A recent BSEC
ruling, as reported on June 16, 2025, saw Abul Khayer and his associates
slapped with fines totaling Tk 24.6 million for manipulating the share price of
Crystal Insurance. This isn't an isolated incident; similar penalties have been
levied against them in the past for infractions involving other companies such
as Fortune Shoes, Delta Life Insurance, NRB Commercial Bank, and Sonali Paper
& Board.
Specific BSEC findings indicate a
coordinated effort to artificially inflate the share price of Crystal
Insurance. For instance, an investigation revealed that between July 16, 2023,
and September 21, 2023, Crystal Insurance's share price skyrocketed from Tk
41.20 to Tk 132.50, an abnormal increase of 194% without any corresponding
material information or business developments to justify such a surge. The
BSEC's detailed inquiry reports illustrate that manipulators utilized multiple
brokerage firms and Beneficiary Owner (BO) accounts, often within their
network, to create a false impression of high demand. This strategic manipulation,
involving coordinated transactions and "howlas" (series of trades to
drive prices up), misled general investors, creating an illusion of a thriving
market even when the broader market was in decline.
Data from the BSEC's enforcement
reports shows that entities linked to Abul Khayer, such as Eshaal Communication
Ltd. and Monarch Mart Ltd., were actively involved as counterparties in
significant share transactions of Crystal Insurance, sometimes executing
hundreds of "howlas" to influence the price. These actions directly
violate securities laws, designed to ensure fair and transparent trading
practices.
ACC's Intervention: A Broader
Investigation
Adding another layer of scrutiny
to Abul Khayer's activities is the recent case filed by the Anti-Corruption
Commission (ACC). On June 17, 2025, the ACC filed a case against Abul Khayer,
his wife Kazi Sadia Hasan, and 13 others, including former national cricket
captain Shakib Al Hasan, for allegedly embezzling Tk 256 crore from the stock
market through fraud. A travel ban has also been imposed on all 15 accused.
The ACC's investigation alleges
that Abul Khayer, with the assistance of his wife, layered and transferred
illicit funds amounting to Tk 21.14 crore, earned as "capital gains"
from these manipulations, across various channels to conceal their origins.
Furthermore, the ACC's case statement details suspicious transactions totaling
Tk 542.31 crore through 17 bank accounts linked to Abul Khayer. This paints a
grim picture of a systematic and large-scale financial irregularity that
extends beyond mere share manipulation, venturing into the realm of money
laundering and illicit enrichment.
The inclusion of a high-profile
figure like Shakib Al Hasan in the ACC's case underscores the gravity and
potential reach of these alleged market manipulations. The case alleges that
Shakib invested in companies, including Crystal Insurance, whose shares were
being manipulated by Abul Khayer, thereby becoming complicit in the scheme and
allegedly embezzling Tk 2.95 crore as illegally realized capital gains.
Implications for Crystal
Insurance and Market Confidence
While Crystal Insurance Company
Limited itself has reported positive financial performance, with a net income
of Tk 24.76 crore in 2024 and a 12% cash dividend, the repeated association
with share manipulation schemes, particularly involving key figures like Abul
Khayer, casts a shadow on its market perception. Although the company's
fundamentals may be sound, the negative publicity and regulatory actions
stemming from these manipulations can erode investor confidence and affect its
share price stability.
The consistent enforcement
actions by the BSEC and the ACC's active involvement signal a stronger
commitment from regulatory bodies to crack down on market manipulation and
illicit financial activities. These developments are crucial for maintaining
the integrity of Bangladesh's capital market and protecting the interests of
general investors who are often the ultimate victims of such schemes. The
ongoing investigations and punitive measures against individuals like Abul
Khayer are vital steps towards fostering a more transparent, disciplined, and
trustworthy investment environment in Bangladesh.
