NRB Bank asked to punish officials

Bangladesh Securities and Exchange Commission (BSEC) has ordered NRB Bank to take departmental action against its chief financial officer Kamrul Hasan and all of its investment bankers for their involvement in illegal share trading.

Hasan was found guilty of unethical trading activities in collaboration with the outsiders of the company, said the commission in a letter to the lender.

The bank shall take departmental action against Hasan, it said.

All members of the investment banking unit and the concerned officials of NRB Bank are also liable as they failed to play a proper role in this regard, the BSEC said.

It gave the order following recommendations of its probe committee that was formed to see the illegal trading in the stock market.

The lender has to take action against the officials and inform the commission within February 28, according to the BSEC letter.

NRB Bank suspended four employees, including Hasan, for their involvement in the anomalies, NRB Bank Managing Director Mamoon Mahmood Shah told The Daily Star in September last year.

The move came after the Bangladesh Bank unearthed that NRB Bank incurred a loss of Tk 103 crore as it intentionally became involved in unethical trading practices in the stock market in favour of the manipulators.

The unethical trading activity took place between January and August last year when it gave illegal benefits to manipulators by buying shares at higher prices and selling at lower prices, according to a special internal audit carried out by the private commercial bank.

For instance, the lender bought the shares of Paramount Insurance at a higher price though there was an opportunity for it to purchase them at 20-22 per cent lower rates.