Emerald Oil director fined for share trading during prohibition period

The Bangladesh Securities and Exchange Commission (BSEC) has fined Nasir Sikder, an Emerald Oil director nominated by Minori Bangladesh Limited, Tk1 lakh for his involvement in share trading of the company during a prohibited period.

The stock market regulator imposed the fine in December last year for violating the beneficiary trading prohibition rules of 2022.

According to the enforcement report by the BSEC, the Dhaka Stock Exchange (DSE) has undertaken and compiled an investigative report on the share trading activities of Emerald Oil spanning from 27 April to 28 May 2023, which has been duly submitted to the commission.

During the period, Emerald Oil shares jumped over 108% to Tk115.5 each at the DSE.

The report found that Nasir Sikder traded Emerald Oil shares in the prohibited time period that was imposed for two months before the year-ending date until the approval and publication of the financial statements for that year.

According to the rules, an insider, including the director of a company or a fund, cannot buy or sell shares or units of the respective company or fund for two working days before the year-ending date until the approval and publication of the financial statements for that year.

But he bought 24,480 shares of Emerald Oil and sold 10,750 shares through the UCB Stock Brokerage during the prohibited period, the BSEC report said.

The BSEC called Nasir Sikder to join in a hearing over the allegation. In the hearing, he told the commission that it was a mistake due to a lack of compliance knowledge in share trading.