New Age | BSEC begins investigation into alleged stock market fraud by Salman and S. Alam

The Bangladesh Securities and Exchange Commission (SEC) on Monday launched an investigation into allegations of stock market anomalies against Salman F. Rahman, adviser to ousted Prime Minister Sheikh Hasina on private sector and investment affairs, and controversial businessman Saiful Alam, also known as S. Alam.

The commission formed a three-member committee headed by BSEC Deputy Director Mohammad Abul Hasan to investigate the allegations.

The BSEC had previously frozen the beneficiary accounts (BO) of Salman and S. Alam on the recommendation of the ACC.

The BSEC’s investigation will focus on determining whether its activities contributed to irregularities in the capital market.

The committee is also tasked with investigating the financial transactions of family members and the companies they control. A report is to be submitted within 60 days.

Islami Bank Bangladesh PLC Chairman Md Obayed Ullah Al Masud recently stated that S Alam Group had withdrawn more than 90,000 crore taka from the bank, which was over 50 percent of its total loan disbursements.

According to reports, the S Alam Group gained control of Islami Bank in 2017 with the support of the then Awami League-led government and allegedly withdrew around Taka 2 trillion from the banking sector.

The BSEC order also referred to media reports that Salman F. Rahman had defaulted on his loans since the 1980s and was involved in the 1996 stock market crash.

Later, he was given special benefits for his companies and his status as a defaulter was restored.

The Anti-Corruption Commission is currently investigating Salman and S. Alam for amassing illicit wealth.