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BSEC Initiates Rupali Insurance Investigation Following Orthosongbad News
A committee has been formed by the Bangladesh Securities and Exchange Commission (BSEC) to investigate the details of how a deceased individual managed to secure a loan from the listed company Rupali Insurance Limited. The committee’s formation follows the disclosure of a news report by a business news portal, Orthosongbad. According to reliable sources from BSEC.
According to sources, the late Managing Director of Rupali Insurance Limited, Md. Nazim Uddin Khan, reportedly obtained a loan from a foreign financial institution listed in the stock market. The loan was secured in the name of Mr. Md. Nazim Uddin Khan, even three years after his demise, using his shares as collateral. This matter came to light following a news report titled “Deceased Person Presented as Insurance Company Director, Resulting in Loan Acquisition” published by the financial news portal Orthosongbad on May 20.
It has been reported that a committee for investigation has been formed by the Bangladesh Securities and Exchange Commission (BSEC), consisting of its Joint Director Syed Mohammad Golam Mowla, Deputy Director M. Nanu Bhuiyan, and Assistant Director M. Mahmudur Rahman. Additionally, the supervisory responsibilities for the investigation activities of the Inspection, Inquiry, and Investigation Section of the organization will be overseen by the Additional Director M. Faruque Hossain.
In a significant development, an order signed by Mohammad Abul Hasan, Director of the Bangladesh Securities and Exchange Commission (BSEC), reveals that an investigation is warranted into a news report published by the online financial news portal “Orthosongbad.” According to the report published on May 20, the late Md Nazim Uddin Khan, who passed away on May 18, 2012, was listed as a director of Rupali Insurance Company in its annual reports for a span of eleven years. During this period, the company’s financial statements presented him as an entrepreneur director, with his investments preserved as a shareholder with collateral bonds in Uttara Finance and Investment Limited. This points to the need for a thorough inquiry into the borrowing of loans from Uttara Finance and Investment Limited.
The Bangladesh Securities and Exchange Commission (BSEC) has directed a special investigation committee to probe four specific issues as part of an official order. The committee will focus on conducting a comprehensive investigation into irregularities concerning the borrowing of loans from Uttara Finance and Investment Limited, holding shares of the late Nazim Uddin Khan. Additionally, the committee has been tasked with identifying the involved officials of Rupali Insurance who facilitated Nazim Uddin Khan’s appointment as the director, even after his demise. The investigation also extends to pinpointing the individuals from EBL Securities associated with keeping Nazim Uddin’s shareholdings hidden. Alongside these matters, the committee is assigned to delve into other aspects of financial impropriety linked to the loan.
Read More: Deceased Person Presented as Insurance Company Director, Resulting in Loan Acquisition
Citing the authority provided by section 17(k) of the Bangladesh Securities and Exchange Commission Act of 1993, the BSEC’s order establishes the formation of this investigation committee. This directive underscores the commission’s commitment to ensuring transparency and accountability within the securities and exchange sector.
In a noteworthy development, it has come to light that Mohammad Nazim Uddin Khan, the former Managing Director of Rupali Life Insurance, who passed away while under medical care at Dhaka’s Dhanmondi Nursing Home on May 18, 2012, was posthumously listed as the company’s director even eleven years after his demise. Furthermore, in 2015, a loan of approximately 3. crore taka was acquired from Uttara Finance and Investment Limited while keeping shares of the deceased director as collateral. This loan was obtained by Fojilatunnesa, a director of the company & the wife of the Chairman of Rupali Life Insurance according to findings from a financial news portal Othosongbad.
The spot rate for shipping goods in containers to Europe from Asia rose for a ninth straight week, the longest stretch of rising prices since the pandemic disrupted global supply chains in 2021.
The rate for a 40-foot container to Genoa, Italy, from China hit $7,029 over the past week, the highest level since September 2022, according to the Drewry World Container Index released Thursday. The cost to Rotterdam increased to $6,867. Both rates have essentially doubled since April.
For the busy trade route from Shanghai to Los Angeles, the rate rose for a seventh straight week, to $6,441.
While not all freight is moving at such elevated prices, the spot market for containers reflects the supply of available space on ships and the demand from importers. That balance has tightened during the past six months as vessels avoid the Red Sea, where Houthi rebels have attacked commercial traffic, including a bulk commodity carrier that sunk earlier this week.
Most container lines are taking the longer route around southern Africa, creating disruptions similar to those two or three years ago. Ryan Petersen, founder and chief executive officer of Flexport Inc., said “we’re right back almost to where we were during the peak Covid situation.” He’s seeing spot rates even higher than the numbers Drewry just reported.
“Right now, if you want to ship a container from China to here in the UK it will cost you about $10,000 unless you have a contract,” Petersen said during a Bloomberg Television interview in London on Thursday. “And by the way, most of those contracts that were signed at lower prices are not being honoured and they’re adding surcharges to them.”
Petersen said it’s hard to predict how long shipping prices will keep climbing, noting that carriers spent some of their record-high profits made during the pandemic on new vessels that are entering service through 2026, which should help ease the latest capacity crunch.
But he also said uncertainty about delivery reliability later this year is worrying some companies and motivating them to order now rather than wait. Among the threats is a dockworker strike at ports along the US East and Gulf coasts, which Petersen said might send container rates above their pandemic highs if cargo bound for those gateways is significantly disrupted.
Prime Minister Sheikh Hasina has called on United Arab Emirates (UAE) investors to invest in Bangladesh’s special economic zones. The request was made during a meeting with UAE Ambassador Abdulla Ali Abdulla Khaseif Alhmoudi at her official residence, Ganabhaban, this morning.
According to the Prime Minister’s Press Secretary, Md Nayeemul Islam Khan, the UAE ambassador assured the prime minister that his country would issue visas for Bangladeshi workers, ensuring they have jobs waiting for them in the UAE. The envoy emphasized the importance of preventing illegal migration from Bangladesh, a concern both countries agreed to address more diligently.
The UAE ambassador also mentioned that several UAE ministers are planning to visit Bangladesh soon to explore new avenues for strengthening bilateral relations. “We already have a very extensive and deep tie, but we are eager to take it to a new height,” Alhmoudi stated.
Alhmoudi highlighted that approximately 20,000 Bangladeshis travel to the UAE each month, with the UAE embassy issuing around 1,000 visas daily—500 directly and 500 through agents. He extended an invitation to Prime Minister Sheikh Hasina to visit the UAE, noting that UAE President Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum are eagerly waiting to welcome her.
In response to Sheikh Hasina’s appeal for UAE investment in Bangladesh’s special economic zones, Alhmoudi said that the visiting UAE ministers would discuss the matter further. The envoy also sought cooperation from the prime minister to expedite UAE investments in Bangladesh, including in the container terminal sector. Sheikh Hasina assured him that her government is accelerating processes across all sectors.
Additionally, Alhmoudi mentioned that a UAE company is in the final stages of negotiating prices to provide an Advance Passenger Information System (APIS) to Bangladesh’s civil aviation sector. The prime minister delegated the task to PMO Secretary Mohammad Salahuddin.
For security reasons, the US, EU member states, and other countries now require detailed passenger information from airlines before travel, known as Advance Passenger Information (API).
One of the listed companies, Bata Shoe Bangladesh Limited discloses its financial reports for the first quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 13.42 paisa in Q1 of the current financial year (January – March 24). EPS was Tk 9.96 (restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s net asset value (NAV) per share stood at Tk 251.35.
