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🇧🇩 Bangladesh /Economy & Trade

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From Daily Star · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Bangladesh's Securities and Exchange Commission (BSEC) has imposed fines totaling Tk 1,497 crore on individuals and institutions for stock market corruption.
  • These penalties stem from investigations into market manipulation, including irregularities involving Beximco shares and bond issuances.
  • Several former BSEC officials and bank executives have been permanently banned from capital market activities.

Bangladesh's Finance Minister Amir Khosru Mahmud Chowdhury announced that the Bangladesh Securities and Exchange Commission (BSEC) has levied fines amounting to Tk 1,497 crore against individuals and institutions implicated in stock market corruption and looting during the previous government's tenure. The minister stated this during a question-and-answer session in parliament.

A significant portion of the fines, Tk 428 crore, was imposed on parties involved in manipulating transactions related to Beximco shares. Further disciplinary actions were taken following investigations into irregularities concerning the issuance of Tk 1,000 crore worth of bonds by Sreepur Township Ltd., specifically the IFIC Guaranteed Sreepur Township Green Zero Coupon Bond.

IFIC Bank PLC’s former chairman, Salman F Rahman, and former vice chairman, Ahmed Shayan Fazlur Rahman, have been declared persona non grata for life and permanently barred from all capital market activities in Bangladesh. Salman F Rahman received a fine of Tk 100 crore, while Ahmed Shayan was fined Tk 50 crore. Additionally, ex-BSEC chairman Prof Shibli Rubaiyat-ul-Islam and former commissioner Dr Shamsuddin Ahmed received lifetime and five-year bans, respectively.

Other individuals facing penalties include IFIC Bank Ltd’s former managing director Shah Alam Sarwar, who was fined Tk 5 crore, and ex-IFIC Investment Ltd CEO Imran Ahmed, banned for five years. Tania Sharmin, former managing director of CAPM Advisory Limited, and Mahbub H. Majumder, former CEO of AFC Capital Limited, also received five-year bans from capital market activities.

Enforcement actions are also underway concerning alleged irregularities in ABG Limited's acquisition of a 25 percent stake in Chittagong Stock Exchange PLC. The BSEC is conducting disciplinary proceedings related to various irregularities involving companies such as Acme Pesticides Limited, Al-Amin Chemical Industries Ltd., Emerald Oil Industries Ltd., Sonali Paper and Board Mills Ltd., and BEXIMCO Green Sukuk Al Istisnaa.

Tk 1,497 Crore in Fines Imposed Over Capital Market Irregularities

— Finance Minister Amir Khosru Mahmud ChowdhuryThe Finance Minister announced the total amount of fines imposed by the BSEC.
DistantNews Editorial

Originally published by Daily Star. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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