SEC forms committee to investigate stock market ‘irregularities’ by Salman, S Alam

The four-member committee has been given 60 days to conduct a 'detailed inquiry'

The Securities and Exchange Commission, or SEC, has launched an investigation into the ‘irregularities’ involving former premier Sheikh Hasina's advisor Salman F Rahman and Saiful Alam, chairperson of conglomerate S Alam Group, and members of their families.

The capital market regulator formed a four-strong committee on Monday to look into the allegations of irregularities in the stock market by these two businessmen, who were influential during the deposed Awami League government.

The committee has 60 days to conduct an “extensive inquiry."

SEC spokesperson Farhana Faruqui told bdnews24.com that the committee consists of officials from the market regulator.

The members of the committee are - SEC Director Mohammad Abul Hasan, Additional Director Nazrul Islam and two assistant directors – Amit Kumar Saha and Tauhidul Islam Saddam.

"A directive has been given to conduct a comprehensive investigation into whether there were any irregularities in the market due to activities run by Salman, other members of his family, and entities under his control and S Alam Group chief Alam, his wife, son-in-law, relatives and other entities associated with him,” the SEC order read.

Sheikh Hasina left her premiership in the face of a massive student-led movement and fled to India on Aug 5.

Police arrested Salman, also the Beximco Group boss, and former law minister Anisul Huq while trying to flee via waterways from Dhaka's Sadarghat on Aug 13. They were remanded in connection with several murder cases afterwards.

Chattogram-based S Alam Group head Alam has not been seen publicly in Bangladesh since the fall of the government.

The representatives of the company, including Alam, were removed from Islami Bank and other Shariah-based bank boards forcibly taken over by the group.

Reports of Beximco Group taking loans through irregularities from banks and the government also came to light. Salman has been removed from the post of chairman of IFIC Bank.

The Criminal Investigation Department of police later launched two separate investigations against S Alam Group and Beximco Group on the basis of initial proof of money laundering allegations.

The bank accounts of Salman, his family members, and Alam have been blocked. The National Board of Revenue, or NBR, and the Anti-Corruption Commission, or ACC, also launched a probe against the two high-profile businessmen over multiple allegations.