Written by The Banking Post
The Bangladesh Securities and Exchange Commission (BSEC) has fined the former managing director of IFIC Bank Tk 50 million for misleading investors through the deceptive promotion of a zero-coupon bond linked to Sreepur Township Ltd (STL).
According to the regulator, the penalty was imposed for violations of securities laws in connection with the “IFIC Guaranteed Sreepur Township Green Zero Coupon Bond,” which had a face value of Tk 15 billion and an issue value of Tk 10 billion.
The BSEC said IFIC Bank acted as guarantor for the bond, while IFIC Investments Ltd served as adviser and arranger. However, promotional materials falsely implied that IFIC Bank itself was the issuer, misleading investors about the bond’s credibility.
The commission noted that such misrepresentation breached key investor protection principles and undermined market transparency.
Earlier, the BSEC had permanently banned Salman F Rahman, former chairman of IFIC Bank and private sector investment adviser to the ousted prime minister Sheikh Hasina, for his involvement in the same scheme.
His son, Ahmed Shayan Fazlur Rahman, the bank’s former vice chairman, and Prof. Shibli Rubayat-Ul-Islam, former BSEC chairman, also received lifetime bans for their roles.
Additionally, the commission fined Salman F Rahman Tk 100 crore and Shayan Tk 50 crore, bringing the total penalties in the case to one of the highest in the regulator’s history.
