Dhaka, Jan. 14 -- The government will take action against the auditors of five recently merged banks over allegations of manipulating financial statements that encouraged small investors to buy their shares from the stock market, Finance Adviser Dr Salehuddin Ahmed said on Tuesday.

He indicated that the authorities are examining the circumstances under which investors made their investment decisions based on the banks' published accounts.

Dr Ahmed made the remarks while briefing reporters after chairing two meetings of the Advisers' Council on Government Purchase and Economic Affairs at the Bangladesh Secretariat.

He was responding to concerns raised by investors who said they relied on the banks' apparently strong financial positions ...