The High Court upheld the Bangladesh Securities and Exchange Commission’s (BSEC) decision to fine and ban the former managing director of Banco Finance and Investment Limited from the capital market. The court dismissed his writ petition on April 30.
BSEC found that the former managing director violated Public Issue Rules by holding pre-IPO shares of various companies in the names of his relatives and wife and profited from them. Consequently, the BSEC imposed a five-year ban and a Tk10 crore fine on him in November 2022. While upholding the BSEC’s decision, the High Court removed the regulatory penalty of Tk16 crore imposed on five of his family members due to insufficient evidence of their involvement.
The former managing director stated that he would decide whether to appeal after discussing with his lawyer. According to BSEC sources, he took advantage of his position as an issue manager, holding pre-IPO shares under his relatives’ and wife’s names. He also failed to cooperate with an enquiry committee formed by the commission.
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