Bangladesh regulator fines CBC Capital-led group over Lovello share manipulation

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CBC fined over Lovello shares

Highlights

CBC Capital, Liz Fashion Industry Ltd affiliates, and associated individuals received fines totaling over Tk35.92 lakh after BSEC found coordinated Lovello share price manipulation.
The network executed 13 matched and circular transactions involving 967,125 Lovello shares, representing 22.30% of market volume and generating Tk2.24 crore realised, Tk1.95 crore unrealised capital gain.
BSEC cited two Securities and Exchange Ordinance violations and ordered fines to be paid within 30 days, highlighting increased regulatory enforcement in Bangladesh's capital market.

Enforcement action follows DSE trading probe

As reported by The Business Standard, the Bangladesh Securities and Exchange Commission imposed the penalties under enforcement orders issued on 13 October 2026 after a Dhaka Stock Exchange investigation into suspicious trading patterns. The probe found an interconnected network of beneficiary owner accounts involving CBC Capital, Liz Fashion Industry Ltd Employees Contributory Provident Fund, Liz Fashion owner Zhuang Lifeng, the company's head of finance HM Rubaiyat, his wife Shayla Akter, and deputy general manager of planning Rajan Kumar Saha.

Together, the group accounted for 22.30% of Lovello's total market trading volume during the period under review. Investigators said the network carried out 13 matched and circular transactions involving 967,125 shares, activity the regulator says artificially inflated turnover and pushed up the share price.

The BSEC said the transactions generated a realised capital gain of Tk2.24 crore and an unrealised gain of Tk1.95 crore. Among the penalised parties, Liz Fashion ECPF received the largest fine at Tk14.66 lakh, followed by Tk7.50 lakh for CBC Capital, Tk6.82 lakh for HM Rubaiyat, Tk4.94 lakh for Shayla Akter and Tk2 lakh for Rajan Kumar Saha.

Compliance stance signals tougher market oversight

The regulator cited two violations of the Securities and Exchange Ordinance, 1969. Each party was fined Tk1 lakh for executing matched trades that created a false or misleading appearance of active trading, with additional penalties imposed for conducting a series of transactions intended to raise the share price for financial gain.

During enforcement hearings, the respondents argued they were not directly responsible, pointing to discretionary portfolio management by merchant bank managers, limited familiarity with capital market rules or temporary absence from the country for religious pilgrimages. CBC Capital's board also said the transactions were conducted without the required authorisation from its suspended chief executive officer.

The commission rejected those arguments, saying account holders and corporate boards cannot avoid their statutory compliance duties. It ordered all penalised parties to pay their fines through bank drafts within 30 days, underscoring a stricter stance on market conduct in Bangladesh's capital market.

Our earlier report on Malaysia’s plans to tighten enforcement around foreign products and e-commerce described the government’s move to coordinate ministries and strengthen the legal framework as digital trade expands. We noted the focus on protecting local micro, small and medium enterprises through steps such as drafting an e-Commerce Bill, standardising the “Jom Beli Produk Malaysia” promotion framework, and funding programmes that help SMEs reach digital and international markets.

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