BM Desk : The Bangladesh Securities and Exchange Commission (BSEC) is once again under the spotlight after uncovering serious irregularities in the placement share issuance of Acme Pesticides Limited. Following a preliminary investigation, BSEC has decided to forward the case to the Anti-Corruption Commission (ACC) for further action. The probe found that shares were allocated to certain investors without any corresponding financial deposits—raising major concerns about procedural violations and potential fraud.

According to BSEC sources, action is being considered against a total of 15 individuals and six institutions, including six members of Acme Pesticides’ board of directors. Among those implicated are the company’s top executives, including Chairperson Shanta Sinha, Managing Director Reza-ur-Rahman Sinha, and CFO Selim Reza. The investigation revealed that some investors had submitted fake bank documents, others made only partial payments, and some received share allocations without paying at all. In total, 1.13 crore shares were issued in exchange for approximately Tk 11.39 crore, although investors reportedly paid nearly Tk 2.6 crore more—raising further questions about transparency in the process.

In response, four of the accused investors—Bengal Asset Holdings Ltd., Chattogram Plastic & Fisheries Ltd., Heritage Capital Management Ltd., and individual investor Ruhul Azad—have submitted formal letters to BSEC, requesting a chance to explain their positions. They claimed they purchased shares at prices higher than the official valuation and were not given an opportunity to respond before the commission took its decision. In a letter dated September 26 and addressed to BSEC Chairman Khondker Rashed Maksud, they urged BSEC’s Enforcement Division to review the findings and provide them access to the investigation report and meeting records.

The case has also drawn attention to additional individual and institutional investors accused of misconduct. These include Matiur Rahman—previously involved in the controversial “goat scandal”—along with several other named investors and companies such as SK Teams & Industries, Bikrampur Potato Flakes Industries, and NRB Equity Management Ltd.

Acme Pesticides, a B-category company listed in 2021, raised Tk 30 crore through its IPO by issuing 3 crore shares. Despite a paid-up capital of Tk 135 crore, the company has been surrounded by allegations of financial mismanagement since its listing. With the BSEC now referring the matter to the ACC, and investors demanding a fair hearing, the case is set to become another high-profile test of regulatory accountability in Bangladesh’s capital markets.