The Bangladesh Securities and Exchange Commission on Sunday started an investigation into the approval process of initial public offering and share manipulation involving nine companies, Beximco鈥檚 Sukuk, and issuance and selection of Basundhara Group鈥檚 company as strategic investor of Chittagong Stock Exchange.
The decision to probe into allegations of irregularities was made at an emergency commission meeting on the day.
A 5-member investigation committee was formed headed by Zia U Ahmed, the founder chairman and consultant of USA-based Terra Resources International聽Investment and Marketing Services.
The BSEC asked the committee to look into all kinds of irregularities in Best Holdings Limited, Al-Amin Chemical Industries, Sonali Paper & Board Mills Ltd, Fortune Shoes Limited, Ring Shine Textiles Limited, Acme Pesticide Limited, Quest BDC Ltd, Coppertech Industries Limited, and Emerald Oil Industries Ltd.
The allegations of irregularities include approval process of the IPO, share acquisition, transferring company from over the counter market to SME platform, an abnormal rise in share prices, dividend disbursement among investors, money laundering, and exaggerating sales information in annual financial report.
The regulatory body also asked the committee to look into any irregularities regarding Beximco Green Sukuk Al Istisna鈥檃 approval process.
Beximco Group and its associates allegedly pressurised several banks into investing in its Tk聽3,000 crore Sukuk bond, despite reluctance from the banks due to concerns over the project鈥檚 viability.
Salman F Rahman, former private industry and investment adviser to ousted prime minister Sheikh Hasina, also vice-president of Beximco Group, reportedly used his influence to push the investments.
The committee will also look into any irregularities in the issuance of IFIC Guarenteed Sreepur Township Green Zero Coupon Bond.
The BSEC approved Sreepur Township to raise Tk 1,000 crore through a bond in July 2023, with IFIC Bank serving as its guarantor.
The panel will also investigate the issuance and selection of Bashundhara Group鈥檚 ABG Limited as the strategic partner of the CSE.
The 5-member committee includes financial sector specialist Yawer Sayeed, former member of National Board of Revenue Md Shafiqur Rahman, deputy attorney general lawyer Md Zeeshan Haider and BSEC executive director Md Anowarul Islam.
The committee has been asked to submit its report in 60 days.
