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The securities regulator has launched an investigation into the financial transactions of Aviva Equity Management, owned by the infamous loan defaulter S Alam Group.
Earlier in 2023, the Dhaka Stock Exchange found evidence of misappropriation of investors' money by Aviva Equity Management. According to an inspection report at the time, the broker owed Tk 72.2 million to its clients, but a DSE inspection team, while scrutinizing the company's bank documents, found Tk 41.6 million.
Having found investors' funds worth Tk 30.6 million missing, the DSE sought documents relating to loans taken and transactions executed by the company, but it did not comply with the regulatory instruction. Moreover, Aviva Equity Management presented fabricated data showing a surplus in the clients' payable position.
Despite the financial anomalies and the lack of response to queries about negative equity in the Consolidated Customers' Account (CCA) of the broker, the prime bourse did not take stringent action against it until the change of the political landscape in August last year.
Md. Abul Kalam, spokesperson of the securities regulator, said the fresh probe is meant to protect the interest of investors. A three-member committee has been formed to look into the operations of Aviva Equity Management, he said, adding that the committee has been instructed to submit a report within 60 working days.
Formerly Reliance Brokerage Services, the stockbroker is an associate company of Aviva Finance Ltd. (formerly Reliance Finance).
According to the Bangladesh Securities and Exchange Commission (BSEC), Aviva Equity borrowed funds from Aviva Finance. The investigation is aimed at finding out how the loan money was used, whether the transactions complied with regulatory guidelines, whether related parties received margin loans from the borrowed funds, and if the money was laundered.
Aviva Finance was chaired by S Alam Group's Chairman Mohammad Saiful Alam until the Bangladesh Bank removed him in February 2023. Notably, disgraced financier PK Halder served as managing director of Reliance Finance (now Aviva Finance) in 2009. Following financial scandals, Reliance Finance was rebranded as Aviva Finance in 2020, while its subsidiary Reliance Brokerage became Aviva Equity Management.
Apart from the fund shortfall in the CCA, Aviva Equity has been facing allegations of manipulating share prices, providing loans to negative accounts, dumping shares in dealer and negative accounts, purchasing overpriced placement shares, and embezzling money from employees' provident funds.
Aviva Equity's Managing Director Md. Shahidul Islam has been accused of involvement in these irregularities.
The latest inquiry is meant to determine how much Aviva Equity borrowed from Aviva Finance and the outstanding loans with interest as of August 2025. It is also expected to reveal whether the loans were used for money laundering.
The investigators will also examine the reasons behind repayment failure, assess Aviva Equity's repayment capacity, and suggest a possible timeline for settlement.
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