BM Desk  : Former chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, and Riaz Islam, CEO and Chief Investment Officer of LR Global Asset Management, have been banned for life from all activities related to the capital market.

The decision was made during the 978th commission meeting of BSEC held on Tuesday (October 21), presided over by current chairman Khandaker Rashed Maksud.

According to a BSEC press release, both individuals were found to have engaged in unethical collusion in connection with investments in Padma Printers & Color Limited and the capital increase process of Quest BDSC Limited (formerly Padma Printers) from Tk 1.6 crore to Tk 50 crore.

Earlier, in September, an investigation by a BSEC-formed committee uncovered irregularities, corruption, and violations of securities laws involving Quest BDSC’s operations in the over-the-counter (OTC) market. The committee found evidence of:

• Inflated share purchases by the board
• Appointment of officials as directors in six mutual funds
• Misuse of fund assets and unauthorized business activities
• Securities law violations and harm to investor interests
• Corruption, bribery, and money laundering

In September 2021, LR Global used funds from six of its managed mutual funds—allegedly with the support of then-chairman Shibli Rubayat—to purchase a 51% stake in Padma Printers at inflated prices. Six LR Global officials were then installed as directors.

The report also claims Shibli abused his power and encouraged core sponsor shareholders to sell their shares.

Both individuals have been permanently banned based on these findings, and the commission has recommended that the Anti-Corruption Commission (ACC) investigate the proven allegations of corruption and money laundering in greater detail.