Bangladesh regulator targets Internet stocks scam

Bangladeshi stock exchange regulators expressed concern Tuesday that the local bourse was being manipulated by a rogue Facebook group, and cautioned investors not to act on a recent slew of online tips.

The Securities and Exchange Commission said a 1,000-member group on the popular social networking site was spreading false information in a bid to influence the market, the commission’s executive director told AFP.

“A group of people are posting information online to make investors buy shares in certain companies which (constitutes) illegal market manipulation,” Farhad Ahmed said, adding the commission has launched an investigation.

“(They) are trying to influence the market by forecasting share prices that are misguiding many investors,” he said, adding that those responsible would be punished and that a formal complaint had already been lodged to Facebook. AFP