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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.
Weekly Dhaka Stock Exchange, DSE, Dhaka Bourse has seen a negative performance in Indices, Turnover & Market Capitalization throughout the whole week, This information was disclosed in the weekly market review from the DSE.
According to sources, (5 working days) the turnover of DSE lost by Tk 3 thousand 289 crore 7 lakh (August 18 – August 22). At the same time, the market capitalization has decreased by 16 thousand 132 crore 59 lakh taka.
The benchmark index ‘DSEX’ lost by 203.92 points or 3.45 percent, in the outgoing week. At the end of the week, the index stands at 5,699 points. The Shariah-based index ‘DSES’ dropped 45.64 points or 3.61 percent and therefore the index stands at 1,264 points. The blue-chip index ‘DS30’ decreased by 88.76 points or 4.07 percent, hence the index stands at 2,090 points.
Shares and units worth 3 thousand 122 crore 5 lakh taka were traded in Dhaka Stock Exchange. At the end of the week, the market capitalization stood at 6 lakh 92 thousand 831 crore 80 lakh taka.
Shares and units of 394 companies were traded on Bourse during the week. Of these, 5 shares were unchanged, 357 companies declined, and 32 companies advanced.
Grameenphone Limited has ranked at the top of weekly trading on DSE. The Company records an average turnover of 57 crore 69 lakh taka.
Midland Bank PLC ranked at the top of weekly gainers on DSE. The share has risen 12.09 percent to its highest price.
SEML FBLSL Growth Fund has ranked at the top of weekly losers on DSE. The unit has dropped 14.52 percent lowest in the last week.
Prime Minister Sheikh Hasina today offered solace to the families of those killed during the chaos instigated by BNP-Jamaat terrorists, who exploited the recent quota reform movement. The grieving families met her at her official residence, Ganabhaban.
Among the bereaved were the family members of Abu Sayeed, a student from the English Department at Begum Rokeya University, Rangpur (BRUR), along with 33 other families. Sheikh Hasina presented them with saving certificates and cash as a gesture of assistance.
The sight of the prime minister brought the grieving families to tears. As each family member approached Sheikh Hasina, their emotions overflowed, and they broke down crying.
The prime minister, visibly moved, also struggled to contain her emotions. Tears streamed down her face as she listened to their stories, and she appeared deeply distressed.
In her attempt to console the families, Sheikh Hasina shared her own pain, saying, “Look at me, I am living with so much pain.” She reassured them of her support, expressing that she, too, understands the agony of losing loved ones. “It’s my misery that I have to see your tears,” she continued.
The atmosphere at Ganabhaban was heart-wrenching, filled with grief and shared sorrow.
Present at the event were Speaker Shirin Sharmin Chaudhury and Home Minister Asaduzzaman Khan, with Prime Minister’s Office Secretary Mohammad Salahuddin moderating the proceedings.
Abu Sayeed’s father Makbul Hossain, mother Monwara Begum, and other relatives traveled from Rangpur to Dhaka and attended the gathering at Ganabhaban.
Abu Sayeed, a 12th batch student in the English Department at BRUR, died on July 16 during the quota reform movement in Rangpur. Earlier, on July 26, the BRUR administration provided financial support to Sayeed’s family, delivering a cheque of Taka 750,000 to his parents in Pirganj, Rangpur.
Dhaka Stock Market DSE, Bourse on the first working day of the week, 28th July, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
488 crore 38 lakh taka shares were traded on this day. 8 crore 96 lakh less tradings were done in DSE today compared to the previous workday, July 25th, Shares worth Tk 497 crores 34 lakh shares were traded last time, Thursday.
The benchmark DSEX decreased 29.92 points or 5,383 The Shariah-based index DSES lost 5.65 points or 1,177 and the blue-chip index DS30 dropped by 11.51 points or 1,951.
Of the issues traded, 88 advanced, 261 declined and 43 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 4.20 paisa or 9.93 percent. On this day, the share was last traded at Tk 46.50 paisa.
Shurwid Industries Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Agni Systems Limited 28 crore 71 lakh takas of company shares have been traded.
A total of 33 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 31 lakh 74 thousand 737 shares of the companies were traded. The financial value of which is 30 crore 93 lakh taka
