The Bangladesh Securities and Exchange Commission has imposed a lifetime ban on Salman F Rahman 鈥� former adviser to ousted prime minister Sheikh Hasina and Beximco Group vice-chairman 鈥� his son Ahmed Shayan Fazlur Rahman, and former BSEC chairman Shibli Rubayat-Ul-Islam from all capital market activities over their involvement in the IFIC bond scam.
The decision was made during a commission meeting on Tuesday, presided over by current BSEC chairman Khondoker Rashed Maqsood, according to a press release issued by the regulator on Wednesday.
On June 4, 2023, BSEC approved the IFIC Guaranteed Sreepur Township Green Zero Coupon Bond worth Tk聽1,000 crore, marketed as the 鈥業FIC Amar Bond鈥�.
Though IFIC Bank PLC was only the guarantor of the bond, it was widely promoted using the bank鈥檚 name and branding 鈥� misleading the public into believing the bond was issued by the bank itself.
Salman, as then chairman of IFIC Bank, and his son Shayan, the bank鈥檚 vice-chairman, were found complicit in this misrepresentation.
BSEC fined Salman Tk 100 crore and Shayan Tk 50 crore for their roles in the scheme.
The bond鈥檚 actual issuer, Sreepur Township Ltd 鈥� a little-known real estate firm incorporated just a month before its bond application.
Shockingly, the company had already withdrawn Tk 248 crore in cash from its paid-up capital within four days of the application, raising serious regulatory concerns.
The BSEC inquiry committee, formed earlier to investigate the matter, uncovered extensive regulatory violations, including misuse of institutional identity, misleading advertisements, and inadequate disclosures that exposed retail investors to unjustified risks.
Apart from Salman and Shayan, BSEC also held several other entities and individuals accountable.
Former BSEC chairman Shibli Rubayat faced the lifetime ban for procedural violations tied to both the IFIC bond and the issuance of Beximco鈥檚 Tk 3,000 crore Green Sukuk bond.
Former BSEC commissioner Sheikh Shamsuddin Ahmed was also banned from capital market activities for five years for similar regulatory failures.
IFIC Bank, although not the issuer, was scolded for allowing its name and credibility to be used inappropriately.
BSEC issued warning letters to the bank and several of its former nominated and independent directors, including ARM Nazmus Sakib, Md Golam Mostofa, Md Zafar Iqbal, Quamrun Naher Ahmed, and Shudhangshu Shekhar Biswas.
The regulator also decided to take enforcement actions against then IFIC Bank managing director Shah Alam Sarwar.
Moreover, Imran Ahmed, former chief executive officer of IFIC Investments Ltd was banned for five years from all capital market-related activities.
The credit rating agency Emerging Credit Rating Ltd (ECRL), which provided the rating for the Amar Bond, was fined Tk聽10 lakh for its involvement.
It was not Salman鈥檚 first stock market controversy.
He was also accused of involving with the stock market plunder in 2010 in an investigation report.
However, no major action was taken against him at the time.
Market operators said that such stern actions were necessary to restore investor confidence and demonstrate zero tolerance for capital market abuse, regardless of an individual鈥檚 political or corporate affiliations.
