The 2009–10 stock market scam, one of the most catastrophic financial debacles in Bangladesh's history, left thousands of investors penniless and sparked widespread outrage. The incident prompted the Awami League government to form a probe committee to investigate the causes and identify those responsible.
The late banker Khondkar Ibrahim Khaled led the investigation team. This committee thoroughly investigated the scam and successfully identified its masterminds. Among the key figures were Salman F Rahman and A H M Mustafa Kamal popularly known as Lotus Kamal. However, once the report was submitted, both Salman and Lotus Kamal resorted to various manipulative tactics.
Eventually, they succeeded in having the report shelved, and it never saw the light of day.
Lotus Kamal was one of the stock market's top mafias. From 2018 to 2023, he served as the Finance Minister. Even during illness, he allegedly continued his manipulation of the market.
Through deceit and manipulation, he embezzled around Tk20,000 crore. Many were rendered bankrupt as a result. Investigations have revealed that Lotus Kamal, in reality, does not run any substantial business. Most of his companies listed in bank accounts or tax returns are loss-making. This raises the question—how did he accumulate such massive wealth? The answer points directly to widespread manipulation in the stock market.
Multiple sources indicate that many of the irregularities still occurring in the market are also linked to the Lotus Kamal gang. He reportedly controls the stock market through a syndicate. Unless action is taken against identified mafias like Lotus Kamal, many believe the market can never recover.
During the 2009–10 stock market manipulation, former Finance Minister A H M Mustafa Kamal (Lotus Kamal) was a prominent figure. Following the devastating crash in 2010—the worst in the history of Bangladesh's stock market—the government formed an investigation committee in 2011, led by the late banker Khondkar Ibrahim Khaled. That report highlighted in detail how the share price of his then-defunct and loss-making company, CMC Kamal Textile, increased sixteen-fold.
According to the report, despite being loss-making, the company’s share prices increased abnormally. The Dhaka Stock Exchange (DSE) sent a routine query to the company asking for any justification for this spike. As Kamal was a powerful ruling party MP and the chairman of the parliamentary committee on finance, no investigation was conducted into his company.
The report showed that Kamal had used every tactic employed by others in that period to artificially boost share prices. For example, whenever a company announced stock dividends, share prices would skyrocket. Kamal's listed company, CMC Kamal Textile, declared stock dividends despite being in loss, just to raise its share price. News of asset revaluation also caused a rapid increase in prices.
Share prices also rose after announcements of capital increases through rights shares. Kamal even split shares of Tk100 face value into ten shares of Tk10 each to inflate the price. These tactics helped the company’s share price increase sixteen times its face value, although at one point they had been trading below par. After this artificial inflation, Kamal and his board directors sold shares received as stock dividends for around Tk21 crore.
Although the Ibrahim Khaled-led committee levelled these accusations, Kamal, in a press conference at the Dhaka Reporters Unity, denied involvement in any manipulation of CMC Kamal shares. He claimed that he or his family never sold any of the original shares they held, only shares received as dividends. However, in response to a question, Kamal admitted earning Tk21 crore from selling only bonus shares, while their total investment in the company was just Tk7 crore. When asked if he inflated the share prices to gain this massive profit, he abruptly ended the press conference.
Allegations persist that Kamal made a massive profit through share trading. Yet, no legal action was taken against him. To avoid criticism, he sold the company to a business group named Alif Group. Although he no longer directly operates in the market, his daughter Nafisa Kamal has reportedly continued to profit massively—hundreds of crores—through various manipulation syndicates. A large portion of that money has allegedly been laundered to Dubai and invested in real estate.
Among those accused in the 2010 stock market scam, Lotus Kamal faced the most allegations. At that time, he was chairman of the parliamentary standing committee on the finance ministry. Despite the serious allegations, he faced no punishment under the Sheikh Hasina government. His syndicate’s manipulation devastated millions of small investors, wiping out their capital. Throughout the Awami League’s 15-year rule, whenever stock market scams or fraudulent activities were raised, the same names kept resurfacing. These individuals ensured their preferred persons were appointed to key posts in the regulatory body to facilitate their manipulation. Together, this cartel looted thousands of crores from ordinary investors.
Investigations show that Lotus Kamal pocketed around Tk20,000 crore from the 2010 manipulation alone, when he was the Planning Minister. Though he later withdrew from direct trading, he continued to pull strings from behind the scenes. With his patronage, advice, and backing, several manipulation syndicates flourished.
The Ibrahim Khaled-led inquiry brought concrete allegations against him and recommended legal action. But the Awami League government took no steps. Having evaded justice, he became untouchable—exercising absolute control over the stock market. His preference was final in all market affairs. To keep their schemes running, he appointed loyal persons as chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC). This group decided who would be placed in which department of the regulatory body.
Bd-pratidin English/ ANI
