The Bangladesh Securities and Exchange Commission (BSEC) has imposed a lifetime ban on Salman F Rahman, the former chairman of IFIC Bank PLC, and Professor Shibli Rubayat-ul-Islam, the former chairman of the BSEC, barring them from engaging in any activities within the capital market.
The decision was made during the 965th commission meeting held Tuesday, which was chaired by Khondkar Rashed Maksud. The commission’s action stems from their involvement in the controversial IFIC Guaranteed Sreepur Township Green Zero Coupon Bond issue, which led to misleading advertising and false representation of the bond’s issuer.
The bond was marketed to investors under the impression that IFIC Bank PLC had issued it, when in fact, it was Sreepur Township Ltd, a private real estate company. The bond issue, which raised significant investor concerns, was found to have been improperly promoted and misrepresented.
As part of the penalties, Salman F Rahman was fined 100 crore taka and declared persona non grata in the capital market for life. Likewise, Professor Shibli Rubayat-ul-Islam, who served as the head of the BSEC during the approval of the bond, was also banned for life from participating in any capital market activities.
Dr. Sheikh Shamsuddin Ahmed, another former commissioner, also received a five-year ban from the market due to his involvement in the matter.
The BSEC’s ruling highlights the importance of transparency and integrity in the capital market, ensuring that such breaches of trust will not be tolerated.