Alleged anomalies of 12 firms: Probe body submits six reports to BSEC
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The inquiry committee, formed by the securities regulator to investigate irregularities allegedly committed by 12 companies, including Beximco Green Sukuk Bond, and IFIC Granted Sreepur Township Green Zero Coupon Bond, has submitted six probe reports following their investigations.
The panel has also submitted probe findings relating to the IPO approval procedure of Best Holdings, the process of transferring shares of Al-Amin Chemical Industries, and irregularities related to Fortune Shoes and Quest BDC (Padma Printers and Color).
“The enforcement department of the securities regulator is working on the probe findings,” reads a press release issued on Tuesday.
The commission will take punitive action as soon as possible based on the probe reports, said a Bangladesh Securities and Exchange Commission (BSEC) official.
In September last year, the BSEC formed a five-member panel to investigate alleged irregularities of 12 companies, including Beximco Green Sukuk Bond, and IFIC Granted Sreepur Township Green Zero Coupon Bond.
The committee investigated the issues related to fund collection by Beximco Group through the issuance of Beximco Green Sukuk Al Istisna’a and IFIC-Granted Sreepur Township Green Zero Coupon Bond.
Beximco raised Tk 30 billion through its first-ever asset-backed green sukuk in 2021 for the purpose of business expansion while the then securities regulator allowed for raising Tk 10 billion through the IFIC-granted Sreepur Township Green Zero Coupon Bond in 2023.
There are widespread allegations against Salman F Rahman, vice chairman of Beximco Group, who misused power by getting special facilities for raising money from the capital market, ignoring the securities rules and regulations.
Mr Salman, who worked for Sheikh Hasina as one of her trusted advisers until the downfall of the Awami League government on August 5, was overly influential in the financial sector of Bangladesh. Mr Salman was arrested in the capital on August 13.
Sreepur Township, which was incorporated in March 2023 billion, also raised Tk 10 billion through IFIC Amar Bond in July last year.
Mr Salman used his political power for the bond sales. No banks and institutional investors were interested in subscribing to the bonds due to a lack of trust in Beximco Group.
The inquiry committees also submitted probe findings of Best Holdings, which raised Tk 3.50 billion from the stock market under the book-building method in 2023.
Best Holdings tried to raise funds from the stock market through direct listing in 2020. However, the Dhaka Stock Exchange protested the direct listing procedure, citing that a private company can’t raise funds from the capital market without initial public offerings.
The committee also submitted a probe report on transferring shares of Al-Amin Chemical Industries to the SME market from the OTC market.
Cricket Shakib Al Hasan, through his little-known two firms, and his allies acquired more than 48 per cent stake from the sponsors-directors of Al-Amin Chemical, a delisted chemical firm, in 2022.
The panel also submitted probe findings related to Fortune Shoes and Quest BDC (Padma Printers Limited).
Fortune Shoes raised Tk 220 from the public under the fixed price method in 2016. There were widespread allegations about the price manipulation of Fortune Shoes.