The Anti-Corruption Commission (ACC) raided the Bangladesh Securities and Exchange Commission (BSEC) office, the stock market regulator.
The operation was conducted at the headquarters of BSEC in Agargaon, Dhaka on Sunday (02 March). During the raid, ACC’s enforcement team scrutinized the company’s application list, prospectus, audit report and other necessary documents related to BSEC’s IPO approval.
At the same time, another ACC team went to BSEC to collect information and documents related to Beximco’s Sukuk and IFIC Amar Bonds. Former private industry and investment advisor Salman F. Rahman, who is currently in prison, was involved in these cases.
According to ACC’s Public Relations Office, preliminary investigations have shown that the IPO was approved on the basis of fictitious earnings submitted by the companies and balance sheets created through window dressing. In this situation, the recommendations and observations of the DSE have been ignored in many cases, which has created opportunities for irregularities.
In addition, the ACC said that the BSEC has not taken appropriate action regarding private placement fraud and trading, entering the stock market at an inflated share price and selling shares quickly. After approving the illegal IPO of weak companies, they were transferred to the ‘Z’ category within a few days.
The ACC also said that a full report will be submitted to the commission after reviewing the necessary records and documents regarding the irregularities found in the operation.
In this incident, many have alleged that during the 15-year rule of the Awami League government, there were widespread irregularities and looting in the country’s stock market. Many weak companies, even companies that had stopped production, were given the opportunity to withdraw crores of taka from the market through IPO.
Salman F Rahman, former Prime Minister’s private industry and investment advisor, has allegedly taken out about Tk 5,000 crore from the market by issuing Beximco Green Sukuk and Amar Bonds. In view of these allegations, today the ACC conducted an operation in BSEC.
