The Bangladesh Securities and Exchange Commission (BSEC) has designated former IFIC Bank chairman and Beximco Group vice-chairman Salman F Rahman, along with his son and former IFIC Bank vice-chairman Ahmed Shayan Fazlur Rahman, and former BSEC chairman Shibli Rubaiyat-Ul-Islam as persona non grata in the capital market of the country for life.

The commission announced this decision in a press release on Wednesday.

BSEC has also levied a fine of Tk100 crore on Salman F Rahman and a Tk50 crore fine on his son Shayan.

Imran Ahmed, the former CEO of IFIC Investments Limited, has been banned from participating in any capital market activities for five years, while legal proceedings have been initiated against Shah Alam Sarwar, the then Managing Director of IFIC Bank.

IFIC Bank PLC, as an entity, received a formal warning regarding its involvement in this issue.

Furthermore, the commission has chosen to caution several former nominated and independent directors of IFIC Bank, including ARM Nazmus Saquib, Md Golam Mostafa, Md Zafar Iqbal (ndc), Kamrun Nahar Ahmed, and Sudhanshu Shekhar Biswas.

The statement indicated that these actions were taken based on findings from a capital market inquiry and investigation committee, which examined the issuance of the Tk1,500 crore “IFIC Guaranteed Sreepur Township Green Zero Coupon Bond” by Sreepur Township Ltd—a private limited company founded in March 2023.

The investigation highlighted concerns regarding the allocation of Tk248 crore within a mere four days of capital raising, purportedly for land acquisition and development, a decision that the commission deemed questionable.

Additional inquiries are underway concerning the irregularities associated with the Beximco Secured Convertible or Redeemable Asset-Backed Green Sukuk. The commission announced that it would implement necessary actions against all individuals and organizations implicated in regulatory violations related to the Sukuk issuance.

In its statement, BSEC reaffirmed its dedication to transparency and sound governance within the capital market, emphasizing that it would persist in enforcing stringent measures against such irregularities.