The former managing director of IFIC Bank, Shah Alam Sarwar, is facing a fine of Tk 5 crore from the stock market regulator for his involvement in the manipulation of IFIC Aamar Bond. This decision comes after the Bangladesh Securities and Exchange Commission (BSEC) declared Salman F Rahman, the former chairman of the bank and former adviser to ex-Prime Minister Sheikh Hasina, persona non grata in the stock market for life due to misleading investors with a deceptively named bond.
Furthermore, similar punitive measures have been taken against Ahmed Shayan Fazlur Rahman, the former vice chairman of the bank, and Prof Shibli Rubayat-Ul-Islam, the former BSEC chairman, for their roles in the same fraudulent scheme. The individuals misled investors by labeling a bond as “IFIC Aamar Bond,” falsely implying it was issued by IFIC Bank when, in reality, the issuer was Sreepur Township Ltd.
Salman has been fined Tk 100 crore, while his son Shayan faces a fine of Tk 50 crore. The irregularities were brought to light by The Daily Star in a report titled “Aamar Bond not IFIC’s” released on November 23, 2023.
The joint venture involving Beximco Ltd and SFR Real Estate Ltd contributed 25 acres of land for collaboration on a revenue-sharing basis with Sreepur Township Ltd. Salman and Shayan, who were associated with Beximco, held ownership in the venture.
Shibli, a former professor at Dhaka University, was serving as the BSEC chairman during the bond’s issuance. Meanwhile, Shah Alam Sarwar was in the position of managing director of IFIC Bank at the time.
The BSEC approved the “IFIC Guaranteed Sreepur Township Green Zero Coupon Bond” with a face value of Tk 1,500 crore and an issue price of Tk 1,000 crore. Sreepur Township Ltd applied to raise funds in 2023, just a month after being established as a private limited company.