Shareholders linked to S Alam Group barred from selling bank stocks

The securities regulator has imposed restrictions on purchase, sale, and transfer of shares by the entities of S Alam Group, its owners and family members of six banks.

Five of the banks involved are listed on the stock exchanges.

To this effect, the Bangladesh Securities and Exchange Commission (BSEC) issued an order on Tuesday.

The banks, whose shares cannot be sold, or purchased or transferred by Mohammed Saiful Alam and his family members, are Islami Bank, First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and Bangladesh Commerce Bank.

Only Bangladesh Commerce Bank is not listed.

Mohammad Saifur Rahman, a BSEC executive director, said the regulatory body issued the directive in line with a request made by the central bank.

BSEC spokesperson Mohammad Rezaul Karim said both the stock exchanges and the depository authority were asked to take measures in compliance with the instruction.

As per the directive, as many as 82 shareholders, including Mr Saiful Alam, his family members and companies of S Alam Group will be forbidden from transferring, selling or purchasing shares of the six banks.

The Bangladesh Bank in its letter to the BSEC said most of the directors and representatives of the banks are related to Chittagong-based S Alam Group and they had taken loans from the banks in breach of rules.

Since they influence the banks' boards, it has become difficult to recover the loans, which is why the financial health of the banks has been deteriorating.

The BB said it would take action against the loan defaulters under the bank company act.

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