Bank accounts of BSEC ex-chief Shibli, 7 others frozen 

The Bangladesh Financial Intelligence Unit has frozen the bank accounts of eight individuals, including former BSEC chairman Shibli Rubayat-Ul Islam, his son Zuhayer Sarar Islam, and six others connected to the stock market.

In a letter issued today, the BFIU instructed banks to freeze their accounts in accordance with the Money Laundering Prevention Act. 

The letter specified that any accounts previously or currently held in the names of these individuals or their related entities must be frozen for 30 days. 

The directive also required that all relevant information or documents related to the suspended bank accounts – including account opening forms, KYC details, and transaction statements from inception to the latest activity – be sent to the BFIU within five working days from the date of the letter.

The other individuals whose accounts have been ordered to be frozen include: Sayadur Rahman, managing director of EBL Securities and former president of the Bangladesh Merchant Bankers Association (BMBA); controversial investors Md Abul Khair, popularly known as Hiru; Javed A Matin; Moniza Choudhury from CWT Asset; Md Delwar Hossain; and Soriful Islam.

Shibli, a banking and insurance professor at Dhaka University, began his term as BSEC chairman in May 2020 for four years. After completing his first term, he was reappointed on 28 April this year for a second term. 

However, Shibli resigned on 10 August after the fall of the Sheikh Hasina government amid a mass uprising.

Md Abul Khair, also known as Hiru, is the deputy registrar of the Department of Cooperatives.

Hiru, the controversial stock investor, faced substantial fines amounting to several crores of taka for share manipulation in various companies. Allegations suggest that, with the support of Shibli, Hiru earned significant profits through share manipulation, yet the commission imposed only minimal fines.

Sayadur Rahman, former president of the BMBA, was involved in bringing initial public offerings (IPOs) despite the weak fundamentals of the companies. This led to irregularities and a massive placement business.

Javed A Matin, another controversial investor linked with Shibli, was also involved in share manipulation alongside Hiru. Matin owned a significant stake in Monrac Holding.

The identities of the two other individuals, Md Delwar Hossain and Shariful Islam, have not been confirmed.

During the Covid-19 pandemic, after assuming the role of chairman, Shibli took several steps to improve the market. These included restructuring the boards of various companies, mandating that sponsor-directors hold 30% of the shares, and reviving long-inactive companies.

However, allegations against Shibli's commission include permitting over 50 weak companies to raise funds through IPOs, leading to losses for general investors.

The commission is accused of failing to take strict action against share manipulators and allegedly allowing certain influential market players to engage in manipulation with only nominal punishments.

While Shibli did not implement fundamental changes in the capital market, it is claimed that his tenure benefitted share manipulators, adversely affecting general investors.