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Published : 22 Oct 2025, 02:22 AM
Reaz Islam, chief executive officer and chief investment officer of LR Global Bangladesh Asset Management, has been banned for life from the stock market over “unauthorised” investments involving six mutual funds.
The Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, announced the decision following a commission meeting held on Tuesday.
The regulator has also removed LR Global from the management of those six mutual funds, citing “serious violations” of investment regulations.
In connection with the same case, former BSEC chairman Shibli Rubayat Ul Islam was also banned for life from the capital market for alleged collusion.
Shibli had previously been banned over irregularities involving Beximco bonds and is now facing similar measures over new allegations.
BSEC noted that LR Global invested nearly Tk 690 million from six mutual funds into shares of Padma Printers, a defunct company listed on the over-the-counter (OTC) market, in two phases.
In the first phase, nearly Tk 240 million was spent to acquire 51 percent of Padma Printers and Colour’s shares. The shares, with a face value of Tk 10, were purchased at an inflated price of Tk 289.48 per share.
Padma Printers was later renamed Quest BDC Limited. In the second phase, Quest BDC increased its capital through a private placement, issuing new shares that attracted an additional Tk 450 million investment from the same six funds.
BSEC said the investments in a closed, loss-making company at such inflated prices “harmed” the interests of the funds’ unit holders, which led to the regulator imposing these sanctions.
The six funds involved are:
• NCCBL Mutual Fund
• LR Global Mutual Fund One
• AIBL First Islamic Mutual Fund
• MBL First Mutual Fund
• DBH First Mutual Fund
• Green Delta Mutual Fund
The commission directed the recovery of the invested amount plus interest, totalling around Tk 900 million, to be repaid to the funds within 30 days.
A BSEC media statement said Reaz, as CEO of LR Global Bangladesh, must ensure the return of the funds. Failure to comply within the deadline will result in a fine of Tk 980 million.
In addition, LR Global Directors George M Stock and Rezaur Rahman Sohag will each face fines of Tk 10 million, it added.
BSEC also imposed fines totalling Tk 91.1 million on six individuals and one institution linked to the irregularities.
The individuals are Reaz, Rezaur, retired brigadier general Sharif Ahsan, Madina Ali, Syed Kamrul Huda, Omar Shoaib Chowdhury, and the company is Bangladesh General Insurance Company (BGIC).
BGIC received the highest fine, while the six individuals were fined Tk 10 million each. The additional fines were imposed on Rezaur and Sharif.
