Stocks
BFIU Freezes Bank Accounts of Ex-BSEC Chief Shibli and Associates
The Bangladesh Financial Intelligence Unit (BFIU) has ordered the freezing of bank accounts belonging to eight individuals, including former Bangladesh Securities and Exchange Commission (BSEC) chairman Shibli Rubayat-Ul Islam and his son, Zuhayer Sarar Islam. The other six individuals are also linked to the stock market.
The directive, issued today under the Money Laundering Prevention Act, requires all banks to freeze any accounts previously or currently held in the names of these individuals or their associated entities for a period of 30 days.
Additionally, banks have been instructed to submit all pertinent documents related to the frozen accounts, such as account opening forms, Know Your Customer (KYC) details, and complete transaction histories, to the BFIU within five working days.
The individuals affected by this order include Sayadur Rahman, Managing Director of EBL Securities and former president of the Bangladesh Merchant Bankers Association (BMBA); controversial investor Md Abul Khair, widely known as Hiru; Javed A Matin; Moniza Choudhury from CWT Asset; Md Delwar Hossain; and Soriful Islam.
Shibli Rubayat-Ul Islam, a professor of banking and insurance at Dhaka University, first assumed the role of BSEC chairman in May 2020 for a four-year term. He was reappointed for a second term on April 28 this year but resigned on August 10 following the fall of the Sheikh Hasina government amid widespread protests.
Md Abul Khair, alias Hiru, is the Deputy Registrar at the Department of Cooperatives and a well-known figure in the stock market for his controversial activities. He has been fined several crores of taka for share manipulation in various companies. Allegations suggest that Hiru, with Shibli’s support, profited substantially from these manipulative activities, yet faced only minimal fines from the commission.
Sayadur Rahman, during his tenure as BMBA president, was implicated in the promotion of initial public offerings (IPOs) of companies with weak financial foundations, leading to significant irregularities and a booming placement business.
Javed A Matin, another investor linked to Shibli, was reportedly involved in share manipulation alongside Hiru. Matin holds a substantial stake in Monrac Holding.
The identities of the other two individuals, Md Delwar Hossain and Shariful Islam, remain unconfirmed.
During his time as BSEC chairman, Shibli initiated several reforms aimed at improving the market. These included restructuring company boards, mandating sponsor-directors to hold at least 30% of shares, and reviving long-dormant companies. However, his tenure has also been criticized for allowing over 50 financially weak companies to raise funds through IPOs, which led to significant losses for general investors.
Critics argue that Shibli’s administration failed to take strong action against share manipulators, instead imposing only nominal penalties that allowed influential market players to continue their activities, ultimately harming the interests of general investors.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
