Insider trading
BRAC Bank�s clarification and our reply
BRAC Bank yesterday sent a clarification in response to a news report published in The Independent, headlined BRAC Bank faces allegation of insider trading.
The clarification, signed by BRAC Bank Head of Communications Zara Jabeen Mahbub, said the allegation against the bank is false, baseless and motivated as there was no insider trading.
BRAC bank has bought 2.2 million of 89.99 million units of shares of AIMS First Guaranteed Mutual Fund, it said.
BRAC Bank said it sided with other parties along with the decision of BSEC to close the mutual fund to protect the investors interest. The next hearing on the issue is scheduled on January 17 (Sunday).
Our reply
Our report carried the version of BRAC Bank authorities. However, buying 2.2 million units of AIMS First Guaranteed Mutual Fund by the BRAC Bank is tantamount to insider trading.
As per the national and international guidelines, being the custodian, BRAC Bank cannot buy shares of Aims First Guaranteed Mutual Fund.
