The Bangladesh Securities and Exchange Commission on Tuesday fined former IFIC Bank managing director Shah Alam Sarwar Tk 5 crore for his involvement in the controversial IFIC Amar Bond scam.
The decision was taken at a commission meeting on Tuesday, chaired by BSEC chairman Khondoker Rashed Maqsood, according to a press release issued by the regulator.
The case stems from the IFIC Guaranteed Sreepur Township Green Zero Coupon Bond worth Tk聽1,000 crore 鈥� popularly known as the IFIC Amar Bond 鈥� which the BSEC had approved on June 4, 2023.
Although IFIC Bank PLC acted only as a guarantor, the bond was aggressively marketed using the bank鈥檚 name and logo, misleading investors into believing that the instrument was directly issued by the bank itself, the BSEC statement said.
The actual issuer, Sreepur Township Ltd, was a virtually unknown real-estate company incorporated just a month before applying for the bond.
A BSEC investigation revealed that the Township withdrew Tk聽248 crore in cash from its paid-up capital within four days of the application 鈥� a move that triggered serious red flags about its financial integrity.
The regulator鈥檚 probe found widespread irregularities, including misuse of IFIC Bank鈥檚 corporate identity, misleading advertisements, and inadequate disclosures that exposed retail investors to excessive risks.
IFIC Bank was sharply criticised for allowing its name and reputation to be used to promote the bond in a deceptive manner.
In July 2025, the BSEC issued warning letters to the bank and several of its former nominated and independent directors 鈥� including ARM Nazmus Sakib, Md Golam Mostofa, Md Zafar Iqbal, Quamrun Naher Ahmed, and Shudhangshu Shekhar Biswas 鈥� while deciding to pursue enforcement action against then managing director Shah Alam Sarwar.
The regulator also banned Imran Ahmed, former chief executive officer of IFIC Investments Ltd, for five years from all capital-market activities.
On the same day, the commission imposed lifetime bans 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 over their roles in the scandal.
Salman Rahman, then chairman of IFIC Bank, and his son Shayan, the bank鈥檚 vice-chairman, were found complicit in the misleading promotion of the bond.
BSEC fined Salman Tk 100 crore and Shayan Tk 50 crore for their involvement.
Former BSEC chairman Shibli Rubayat was also banned for life for procedural violations linked to both the IFIC bond and the Tk 3,000 crore Beximco Green Sukuk bond issuances.
