Five investors sued for stock market crash ==>> CMM Court issues summon after filing of cases by SEC

Express (August 22, 2011)

Chief Metropolitan Magistrate's Court Sunday summoned five big investors to appear before it by October 17 on charge of their involvement in December-January stock market crash, lawyers of the Securities and Exchange Commission (SEC) said.

Md. Rezaul Karim Reza, a lawyer of the SEC, said summon was issued after the SEC Director Mahbuber Rahman Chowdhury filed two cases against the investors following the recommendations of a probe body that was formed by the government to investigate into the causes of the stock market debacle in December-January last.

The accused investors who have been asked to appear before the court are: Abu Sadaf Md Sayeem, Abdul Mabin Molla, Syed Shiraj-ud-Doula and his wife Rasheda Akhter Maya and Habibur Rahman.

However, the SEC Chairman Professor M Khairul Hossain Sunday said more cases on December-January stock market crash may not be filed by SEC.

"Investors should not get panicked over the cases filed against the investors as there is no relation between the declining trend of the market and the regulatory measure," Mr. Hossain said.

He said the regulator would take action against anyone for any foul play, in line with the securities laws.

The SEC member (Law), Md. A. Salam Sikder said the regulator filed the cases to comply with the order of ministry of finance (MoF) in line with probe body's recommendations.

"It's nothing new but part of regulatory measures following the order of MoF. So, the investors should not be worried over such legal action," Mr. Sikder said.

The SEC lawyer Mr. Reza said the SEC filed one case against Syed Shiraj-ud-Doula and his wife Rasheda Akhter Maya and Habibur Rahman as they violated section 17 (e) (IV) of the SEC ordinance 1969, through bulk transactions.

"These shareholders artificially influenced the share market through bulk transactions," Mr. Reza told the FE.

Reza stated that these three shareholders artificially influenced the share prices of People's Leasing through bulk transactions in an effort to reap hefty profits during the period from June 30 to November 04, 2010.

He said the court summoned Abu Sadaf Md Sayeem and Abdul Mabin Molla for almost same allegations of influencing the market through serial trading.

"These two shareholders violated section 17 (e), (II) and (IV) through serial trading and creating artificial influence as well," Mr. Reza said.

The SEC lawyer told the court that these shareholders conducted serial trading from July 27 to August 19, 2010