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The capital market regulator has initiated action against Prime Finance and Investment Limited, a listed non-bank financial institution (NBFI), and its two subsidiaries over a Tk 2.96 billion money laundering case.
In a press release issued on Monday, the Bangladesh Securities and Exchange Commission (BSEC) said it would request the Anti-Corruption Commission (ACC) to begin legal proceedings against those involved.
The BSEC uncovered significant financial irregularities during a routine inspection of Prime Finance and its affiliates. A subsequent in-depth investigation revealed that a sum of approximately Tk 2.96 billion was siphoned off through a large-scale misuse of margin loans.
According to the findings, former directors and managing directors of Prime Finance and Investment Limited and its two subsidiaries -- PFI Securities Limited and Prime Finance Capital Management Limited -- are primarily responsible for the scam.
The BSEC said it would soon forward the names of the suspects to the anti-graft body for further action, recommending a travel ban on the accused individuals before the ACC begins its probe.
Prime Finance and Investment was incorporated in March 1996 under the Companies Act 1994 and began operations the same year. The company was listed on the Dhaka and Chittagong Stock Exchanges in 2005.
In 2010, the company established Prime Finance Capital Management Limited, a 60% owned public limited company engaged in merchant banking activities such as issue management, portfolio management, underwriting, and advisory services.
PFI Securities Limited, another subsidiary, is a 46.15% owned public limited company that operates in stock brokerage, securities investment, and offers margin loan facilities.
The stock price of Prime Finance & Investment Ltd. fell 2.44 per cent on Tuesday to Tk 4 per share on the Dhaka Stock Exchange (DSE), much lower than the face value of Tk 10 per share.
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