The Bangladesh Securities and Exchange Commission (BSEC) has launched an investigation into allegations of irregularities and weak management involving 12 mutual funds operated by Race Asset Management, one of the leading asset management firms in the capital market. To examine serious issues such as violations of laws and potential harm to investors’ interests, the regulator has recently formed six separate investigation committees.

According to a new order issued by the BSEC’s Market Intelligence and Investigation Department, the previously formed three-member investigation committee has been dissolved and replaced with these six new committees. The committees have been given 60 working days to complete their investigations and submit their reports to the Commission. The overall coordination of the investigation process will be overseen by Additional Director Mohammad Rakibur Rahman.

While enforcement actions against non-compliant mutual funds were reportedly lax during the previous government, the BSEC—under the leadership of its current Chairman, Khondaker Rashed Maksud, following the recent political changes—has adopted a stricter stance. Race Asset Management has already been formally notified of the investigation, and senior Commission officials have confirmed the authenticity of the information.

The first committee, led by Additional Director Mohammad Amdadul Haque, will investigate AB Bank 1st Mutual Fund, EBL NRB Mutual Fund, and the internal operations of Race Asset Management. The second committee, headed by Deputy Director Md. Rafiqunnabi along with Rana Das, will probe PHP 1st Mutual Fund and Popular Life 1st Mutual Fund.

The third committee, under the leadership of Joint Director Sultana Parvin, will examine the operations of First Janata Bank Mutual Fund and EBL 1st Mutual Fund. Meanwhile, the fourth committee, led by Deputy Director Md. Mowdud Momen, will investigate financial irregularities in Exim Bank 1st Mutual Fund and First Bangladesh Fixed Income Fund.

Members of the fifth committee include Joint Director Anu Dey and Md. Sagar Islam, who will look into irregularities in IFIC Bank 1st Mutual Fund and Trust Bank 1st Mutual Fund. The sixth and final committee will assess whether there was any mismanagement in two open-ended unit funds—Race Financial Inclusion Fund and Race Special Opportunity Fund.

Currently, Race Asset Management manages a total of 12 funds, comprising 10 listed closed-end funds and two open-ended funds. The primary objective of these six investigation committees is to determine whether any illegal actions were taken in the management of these funds, particularly concerning fund assets and the dividends or rights of shareholders.