The Bangladesh Securities and Exchange Commission (BSEC) has levied fines amounting to Tk 1,497 crore against individuals and entities implicated in market manipulation and fraudulent activities during the previous administration, announced Finance Minister Amir Khosru Mahmud Chowdhury today.
Addressing a query from Kamrul Hasan MP during a parliamentary session, the minister clarified that Tk 428 crore of the total penalties were directed at parties involved in tampering with Beximco share transactions.
Disciplinary actions were initiated following investigations into irregularities surrounding the issuance of Tk 1,000 crore worth of bonds by Sreepur Township Ltd. via its IFIC Guaranteed Sreepur Township Green Zero Coupon Bond.
IFIC Bank PLC’s ex-chairman Salman F Rahman and former vice chairman Ahmed Shayan Fazlur Rahman were designated persona non grata for life and permanently excluded from capital market activities. Salman faced a Tk 100 crore penalty, while Ahmed Shayan was fined Tk 50 crore.
Former BSEC chairman Prof Shibli Rubaiyat-ul-Islam and ex-commissioner Dr Shamsuddin Ahmed were similarly barred from capital market roles indefinitely and for five years, respectively.
Shah Alam Sarwar, former managing director of IFIC Bank Ltd., received a Tk 5 crore penalty, while former IFIC Investment Ltd CEO Imran Ahmed was banned from market activities for five years.
The government also took action against Ring Shine Textiles Ltd. for irregularities in capital withdrawal, as reported by the minister.
Tania Sharmin, ex-CEO of CAPM Advisory Limited, was barred from capital market operations for five years. Mahbub H. Majumder, former CEO of AFC Capital Limited, faced a parallel five-year restriction.
Investigations into ABG Limited’s acquisition of a 25% stake in Chittagong Stock Exchange PLC, supported by its Bashundhara Group subsidiary, are ongoing.
Enforcement proceedings are active against entities including Acme Pesticides Limited, Al-Amin Chemical Industries Ltd., Emerald Oil Industries Ltd., Sonali Paper and Board Mills Ltd., and BEXIMCO Green Sukuk Al Istisnaa.
BSEC has escalated these matters to the Anti-Corruption Commission for potential money laundering actions.
Trading licenses were revoked for fraud allegedly linked to investor fund theft at Tamha Securities Ltd., Bangco Securities, Crest Securities Ltd., and Moshiur CQ Ltd. Cases have been filed, with others referred to the Anti-Corruption Commission.
The finance minister noted that legal actions against former BSEC officials, including Prof Shibli, are currently underway.
BSEC has now been reconstituted with a chairman and three commissioners, and preparations for appointing a fourth member are underway.
The member selection process emphasized transparency, with the minister asserting no political affiliations influenced appointments, as he reported no prior knowledge of nominees.
The reconstituted commission comprises seasoned professionals with extensive experience in domestic and international capital markets, ensuring credibility and expertise in regulatory oversight.
Since its reconstitution, the stock market has displayed a sustained upward trend, with particularly significant gains in recent months attributed to enhanced transparency and restored investor confidence.
Finance Minister Chowdhury affirmed the government’s commitment to advancing reforms aimed at reinforcing capital market governance and international recognition.
He highlighted that renewed confidence has drawn investments from global financial hubs, with fund managers from Hong Kong, New York, and London actively exploring opportunities in Bangladesh’s capital markets.
The minister projected that continued reforms will establish the nation’s capital market as a globally acknowledged institution, marked by transparency and accountability. He cited recent performance metrics indicating the positive effects of policy changes on market stability and investor participation.