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.
