IFIC Bank's former MD fined Tk 50 million over misleading bond advertisements

The Bangladesh Securities and Exchange Commission (BSEC) has decided to impose a substantial fine of Taka 50 million on the former Managing Director of IFIC Bank PLC, Shah Alam Sarwar, for violations of securities laws and regulations.

The decision was finalized during the 980th Commission Meeting held today in the BSEC meeting room, chaired by Chairman Khondoker Rashed Maqsood.

The fine relates to irregularities surrounding the issuance of the ‘IFIC Guaranteed Sreepur Township Green Zero Coupon Bond’.

The bond was issued with an abbreviated value of Taka 15.0 billion and an issue value of Taka 10.0 billion.

It is confirmed that the bond was not issued by IFIC Bank PLC. Instead, the real estate company Sreepur Township Ltd (STL) raised funds through the issuance of this bond. IFIC Bank PLC’s role was strictly as the guarantor for the bond, while IFIC Investments Ltd acted as the adviser and arranger.

However, the BSEC found that the name 'IFIC Amar Bond' was utilized in various advertisements. This use of IFIC’s name was deemed misleading, as it created the impression among investors that IFIC Bank PLC had issued the bond.

The Commission noted that this strategy was used to defraud investors and attract investment.

The BSEC specified that the decision to take action against those involved in the irregularities surrounding this specific bond had been previously resolved during the 965th Commission Meeting.

Details regarding that earlier decision were contained in the BSEC press release dated July 30, 2025.

The current ruling imposes the Taka 50 million financial penalty directly upon the then Managing Director of IFIC Bank PLC Shah Alam Sarwar for the breaches of security laws and regulations.