The Financial Institutions Division of the finance ministry on Wednesday instructed the Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange to form two separate investigation committees to probe insider trading allegations against DSE independent director Abdullah Al Mahmud.
A FID letter, signed by its deputy secretary Farida Yasmin, directed the stock market regulatory body and the Dhaka bourse to submit their investigation reports by 30 working days.
It also instructed the BSEC and the DSE to look into whether the independent director was involved in any other activities breaking rules.
The FID also directed the DSE to suspend Mahmud from his duties as independent director until the investigation is over.
The BSEC appointed Abdullah Al Mahmud, a professor of banking and insurance department at the University of Dhaka, on February 2023 as an independent director to the DSE.
The FID letter mentioned a recent media report that said Mahmud was engaged in market manipulation.