BSEC looking into complaints raised over Padma Bank

The Daily Star  March 14, 2021

The commission chairman says at ERF dialogue

The Bangladesh Securities and Exchange Commission (BSEC) is investigating  complaints regarding Padma Bank and it will take action as per the law, Shibli Rubayat-Ul-Islam, chairman of the commission, said yesterday.

The BSEC received a letter from Mohiuddin Khan Alamgir, founder and former chairman of Padma Bank, and a separate letter from the bank about the complaint, he said.

He spoke at the maiden “Economic Reporters’ Forum (ERF) Dialogue on Business and Economy” at the ERF office in Dhaka.

However, the BSEC chairman did not disclose details about the complaint.

Alamgir has accused incumbent Chairman Chowdhury Nafeez Sarafat of misusing Tk 100 crore from the troubled lender.

At the event, Shibli Rubayat-Ul-Islam also said the commission targets to bring to the market at least six local big industrial conglomerates with annual turnover of over $2.5 billion.

The step has been taken to increase the number of quality shares in the stock market, he said.

“Of the six, one with above $4 billion in annual turnover has already contacted the commission to come to the market.”

However, he again declined mentioning the names of those companies.

“Many people think that Bangladesh does not have such big companies. But, the country now has many entities with $1 billion in annual turnover.”

The companies have grown manifold with the gradual rise of the economy, he said.

Currently, the country now has a Tk 500,000 crore stock market, which was Tk 350,000 crore even a few months ago, indicating a positive trend in the market, he said.

“We are expecting a major change in our stock markets within the next two years as we have taken some bold steps to help the positive trend continue in the stock markets.”

Moreover, the BSEC is going to hold roadshows in Switzerland and Germany in June to bring in more bonds to Bangladesh, he said.

Many major global business districts like Australia, Toronto and the UK have been urging the BSEC to hold such roadshows in those areas also, he said.

The current IT systems of the stock exchanges will be strengthened soon as they are not capable of handling big transactions that are needed in case of bonds, the commission’s chairman said.

Regarding the forgery in the audit report by a section of listed companies, he said the BSEC has been working with different regulatory bodies, including the National Board of Revenue and the Financial Reporting Council, for agreeing on accepting unified audit reports only.

Because many companies publish forged audit reports in connivance with a section of unscrupulous audit companies, which give false data on earnings per share, he said.

Currently, the government allows hedge fund for one year but it should be more than one year so that the local companies can purchase commodities at cheaper rates to make a good business with the changes in global prices, he said.

Regarding the role of stock market on generating capital for industrialisation, he said the bourses should be the ground for making long-term financing, not banks.

It will not be viable for any bank in Bangladesh if it finances for a long time like for 10 years, but the banks are financing for 25 years or more, he said.

Sharmeen Rinvy, president of the ERF, chaired the discussion moderated by SM Rashidul Islam, general secretary.

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