Written by The Banking Post
The Bangladesh Securities and Exchange Commission (BSEC) has opened an investigation into alleged stock price manipulation and money laundering involving companies and individuals tied to Beximco Group chairman and lawmaker Salman F Rahman.
The move follows a Bangladesh Bank report that flagged suspicious equity investments worth Tk 67.97 billion, held by eight companies and 34 individuals linked to Rahman. Acting on the findings, BSEC on Sunday formed a four-member probe committee.
According to the Bangladesh Financial Intelligence Unit (BFIU), large loans were taken from several banks — including IFIC, where Rahman served as chairman — under the names of non-existent companies. The funds were later deposited into accounts of eight firms before being invested in listed securities.
The firms under scrutiny include Absolute Construction & Engineering, Apollo Trading, Beximco Holdings, Jupiter Business, New Dhaka Industries, Crescent Ltd, Central Land & Building, and Trade Next Internal.
“There is substantial evidence that bank loans were routed into equity investments,” said BSEC spokesperson Md. Abul Kalam. “We are examining whether the motive was to artificially inflate share prices of Beximco Group and other listed firms.”
The regulator is also probing possible misuse of funds raised through Beximco Green Sukuk (Tk 30 billion, 2021–24) and the IFIC Guaranteed Sreepur Township Zero Coupon Bond (Tk 10 billion, 2024). Although IFIC acted only as guarantor, Beximco advertised the latter as IFIC Amar Bond, allegedly to attract investors.
BSEC suspects that the capital market, fund trustees, and the banking system were used to divert and misappropriate investors’ money. The probe will determine the extent of manipulation and its impact on market integrity.
