Investigation initiated by BSEC concerning NRB Bank Securities due to suspected anomalies
The Bangladesh Securities and Exchange Commission (BSEC) has initiated an investigation into NRB Bank Securities, a member of the Dhaka Stock Exchange, following allegations of misconduct involving the misuse of funds and potential violations of securities regulations.
A three-member enquiry committee has been formed to conduct the investigation, with Mohammad Emdadul Haque, Mithun Chandra Nath, and Mohammad Ikram Hossain serving as members. The committee was formally established with a letter issued by BSEC in the last week of July.
The investigation will focus on several key areas, including any violations of securities rules during board appointments in NRB Bank Securities, the use of undeclared funds by the bank's securities division, and the involvement of Chairman Badiuzzaman and board members in insider trading, market manipulation, and unauthorized control over retail investors' trading activities.
The committee will also examine dealings with related parties within NRB Bank Securities, compliance with corporate governance codes and relevant regulations, and allegations of illegal transactions. The investigation aims to clarify whether funds raised were used according to approved prospectuses and BSEC consents.
BSEC has already taken several steps in response to the allegations. NRB Bank has been directed to take internal action against implicated officials, including the CFO. Beneficiary owner accounts related to questionable activities have been frozen as part of wider market investigations. Detailed probe reports covering multiple issues have been compiled, with enforcement decisions pending commission hearings.
If the ongoing investigation reveals evidence of misconduct, potential consequences for NRB Bank Securities and its officials could include regulatory penalties, suspension or revocation of stock exchange membership, legal action for market manipulation and fund misuse, and recommendations for policy reforms to prevent recurrence of such misconduct.
The investigation remains active, with BSEC reviewing probe reports and conducting hearings before final enforcement actions are decided. This inquiry is part of broader efforts by BSEC to reform the stock market and strengthen oversight following allegations tied to the previous government period.
Despite attempts to contact the CEO of NRB Bank Securities for a comment, the call was not answered. After receiving the report, the Commission will decide on the next steps.
[1] Source: The Financial Express [2] Source: The Daily Star [3] Source: The Financial Express [4] Source: The Daily Star [5] Source: The Financial Express
The ongoing investigation by the Bangladesh Securities and Exchange Commission (BSEC) into NRB Bank Securities involves examining business activities, such as the use of undeclared funds and potential violations of securities rules related to board appointments. In finance-related matters, the committee will also investigate alleged insider trading, market manipulation, and unauthorized control over retail investors' trading activities.
