The Bangladesh Securities and Exchange Commission (BSEC) has imposed a fine of Tk 1.5 million on the Investment Corporation of Bangladesh (ICB) for failing to properly carry out its responsibilities as trustee of a mutual fund involved in irregular investments.

According to a press release signed by BSEC Director and spokesperson Md. Abul Kalam, the regulator found evidence that the Vanguard AML Rupali Bank Balanced Fund managed by Vanguard Asset Management Limited violated securities laws by making unauthorized investments totaling Tk 75 million.

Of the total amount, Tk 15 million was invested in Bengal Poly and Paper Sack Limited, while Tk 60 million went to AFC Health Limited, both in breach of regulatory guidelines.

The decision to fine ICB was taken at the commission’s 1,012th meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood.

BSEC stated that these irregular investments harmed the interests of the fund’s unit holders. As trustee, ICB failed to ensure proper oversight and compliance, leading to the penalty.

In a related development, the commission also identified issues with the audit conducted by Malek Siddiqui Wali & Co.. Although a 99% provision was suddenly maintained against the investments, the matter was not properly reflected in the audit report. The issue has now been referred to the Financial Reporting Council (FRC) for further action.

The move highlights the regulator’s efforts to enforce accountability and improve transparency in the capital market.