The Anti-Corruption Commission (ACC) has launched an investigation into allegations of corruption and irregularities at the Bangladesh Securities & Exchange Commission (BSEC), the regulatory body for the capital market.
The raid took place on Sunday, March 2, at the BSEC office in Agargaon.
During the operation, the ACC’s Enforcement Team reviewed various documents related to IPO approvals, including a list of company applications, submitted prospectuses, audit reports, other necessary paperwork, and the final approval list from BSEC.
Additionally, another team from the ACC collected information , documents related to Beximco’s Sukuk and IFIC Amara Bond at the BSEC office. These are linked to Salman F. Rahman, former private sector industry & investment adviser to Sheikh Hasina, who is currently in prison.
The Anti-Corruption Commission (ACC) has revealed that, in its preliminary review, it found several irregularities in the Bangladesh Securities & Exchange Commission’s (BSEC) IPO approval process. The companies had submitted fabricated earnings and asset reports, with balance sheets manipulated through window dressing. These IPO approvals were granted despite not considering the recommendations, observations made by the Dhaka Stock Exchange (DSE), which led to widespread irregularities.
The ACC further highlighted issues such as private placement fraud, market manipulation by inflating share prices, rapid selling of shares after their prices plummeted. The BSEC failed to take appropriate action in these cases.
The commission also pointed out that weak companies were illegally approved to enter the stock market. Within a short time, these companies were categorized as “Z category” due to poor performance.
Additionally, the ACC noted that IPO approvals were granted based on fraudulent window-dressed balance sheets and fabricated earnings reports prepared by chartered accountants. The issue was further compounded by the issuance of overvalued company profiles by issue managers, which led to the BSEC’s approval of IPOs under questionable conditions.
LND/S H
