Nine comics directors of United Airways besieged, including its founding president, were fined from 10 to 20 takh for an insider hit.
The insider's offense is the purchase or sale of a title by someone who has access to non-public information about the title.
The nine directors had recorded profits by exchanging United Airways shares just before reporting price-sensitive information, according to a press release from the Securities and Exchange Commission of Bangladesh released yesterday.
They also participated in the manipulation of United Airways stock prices, the statement said.
Tasbirul Ahmed Choudhury, founder and chief executive officer of United Airways, and his wife Khandokar Taslima Choudhury were fined 20 lakh each.
Tofael Ahmed Chowdhury, brother of Tasbirul, was fined 10 million lakh with Ashiq Miah, Yusuf Chowdhury, Ali Modhurish, Ahmed Siddika, Khandokar Mahfuzur Rahman and Tahmina Begum.
In addition, United Airways Sayed Shirajuddowla, Abu Sadat Mohammed Sayem and Yaqub Ali investors were fined 10 lakh each for price manipulation.
BSEC warned United Airways to post inflated earnings per share by manipulating the financial statements in 2012, according to the statement.
The decisions were taken at the regular meeting of the committee yesterday.
The company was downgraded to category "Z" last year from category "A" for not declaring any dividends, according to the Dhaka stock exchange.
Listed on the DSE since 2010, the United Airways share was exchanged yesterday at 5.90 TK.
The aviation company has outstanding loans of about 300 crores Tk to financial institutions.
Earlier in June of last year, the BSEC authorized the company to raise capital of Tk 400 crore through a private placement to buy aircraft and pay back loans .
United Airways flights remained suspended on March 5 due to the unavailability of serviceable aircraft.
The plane was immobilized for maintenance, but the airline did not have enough funds to do the necessary maintenance, which is a matter of high cost.
Founded in 2007, the airline has 11 aircraft in its fleet: two Airbus 310-325s, five MD-83s, three ATR-72-212s and one Bombardier Dash-8 100.
He is allowed to operate domestic flights to Chittagong, Sylhet, Jessore, Cox's Bazaar, Rajshahi, Barisal, Saidpur and Ishwardi.
On international routes, he is allowed to travel to Dubai, Kuala Lumpur, Kathmandu, Kolkata, Jeddah, Bangkok, Muscat and Singapore.
The sponsors hold only 4.16% of the capital of United Airways, institutions 14.05%, foreign investors 12.18 and general investors 69.61% remaining, according to DSE.
Also at yesterday's meeting, the M Securities Ltd. brokerage and its management were fined for breaking securities laws. He had granted a margin loan to members of the family of directors who were in breach of the Commission's directive.
OCEMN fined M Securities Tk 20 and its general manager, Chowdhury Mohammed Nurul Azam, $ 20,000, and his wife, Jakia Chowdhury, 10,000 lakh.