BSEC investigates Beximco’s two bonds

The stock exchange regulator yesterday set up a five-member inquiry committee to examine whether there were any irregularities in the issuance of two Beximco-related bonds and in the selection of Bashundhara Group’s ABG as a strategic partner of the Chittagong Stock Exchange.

Beximco, whose vice-chairman Salman F. Rahman was the private industrial and investment adviser to former Prime Minister Sheikh Hasina, raised Taka 3,000 crore on the stock exchange through the Beximco Green Sukuk Al Istisna.

A Sukuk is a Sharia-compliant bond.

On the other hand, the little-known Sreepur Township Company has raised Taka 1,000 crore for a housing project in Gazipur through the IFIC Guaranteed Sreepur Township Green Zero Coupon Bond.

The bond was guaranteed by IFIC Bank, of which Rahman is chairman. The bond documents indicate that Rahman’s companies would be heavily involved in the project, creating conflicts of interest.

The Committee will also review the issuance and selection of ABG of Bashundhara Group as a strategic partner of the Port City Exchange.

In 2022, ABG, a part of the Bashundhara Group, bought a 25 percent stake or 15.86 crore shares for around Taka 240 crore, with each share worth Taka 15. The transaction is also under review.

The inquiry committee has been asked to submit a report within the next 60 days, said a press release from the Bangladesh Securities and Exchange Commission.

The Committee will be chaired by Zia Uddin Ahmed, Chairman of Terra Resources International Investment & Marketing Services Inc. USA.

The other members of the committee are: Yawer Sayeed, a financial sector specialist; Shafiqur Rahman, a former member of the National Board of Revenue; Mohammad Zeeshan Hyder, deputy attorney general of the Supreme Court of Bangladesh; and Md. Anowarul Islam, an executive director of the BSEC.

The committee will also consider the approval of the IPO of Best Holdings, the parent company of Le Meridien Hotel.

All irregularities and manipulations related to Al-Amin Chemical Industries are being investigated.

The inquiry committee will uncover all alleged irregularities and manipulations that allowed Sonali Paper and Board Mills to be listed on the main bourse of Dhaka Stock Exchange from the OTC market. It will investigate how the company’s share price shot up and who was involved in it.

According to data from the Dhaka Stock Exchange, Sonali Paper’s share price rose by about 200 percent to 900 taka within a year.

The subject of the investigation is the irregularities in Fortune Shoes’ dividend distribution and the abnormal increase in the share price.

Irregularities in the fundraising for Ring Shine Textile through private and public offerings as well as the company’s alleged money laundering are being investigated by the committee.

The investigation will examine irregularities at Acme Pesticide regarding the distribution of dividends and the use of proceeds from the IPO.

The committee will also investigate alleged irregularities in the admission of Quest BDC to the main board of the DSE, the IPO of Coppertech Industries and the share transfer of Emerald Oil Industries.