The decision was taken at the 1012th commission meeting held on Tuesday at the BSEC in the city, under the chairmanship of BSEC Chairman Khondoker Rashed Maqsood, said a press release.

According to the commission, the asset manager committed serious irregularities in two separate investment cases.

In 2013, the fund invested Taka 1.50 crore in Bengal Poly & Paper Sack Limited at Taka 25 per share, including a premium of Taka 15, in breach of securities regulations.

To safeguard the interests of unit holders, the BSEC has instructed the company to return Taka 5.74 crore to the fund within 30 days. Failure to comply will result in a penalty of Taka 6.75 crore.

In another instance, in 2017, the fund invested Taka 6.00 crore in AFC Health Limited at Taka 12.50 per share, including a premium of Taka 2.50, also in violation of securities laws.

The commission has ordered the return of Taka 14.85 crore within 30 days, failing which a fine of Taka 16.00 crore will be imposed.

The regulator further stated that any fines imposed must be paid by the company from its own accounts within seven days after the expiry of the 30-day compliance period. Continued non-compliance will attract an additional daily penalty of Taka 10,000.

Meanwhile, the Investment Corporation of Bangladesh has been fined Taka 15 lakh for failing to properly discharge its responsibility as trustee of the fund, which negatively affected investor interests.

In addition, the commission decided to refer the fund’s auditor, Malek Siddiqui Wali & Co., Chartered Accountants, to the Financial Reporting Council for necessary action, citing the auditor’s failure to adequately explain a sudden 99 percent provision made against the investments in its audit report.