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A letter from the finance minister was suspended due to the controversy after regulator BSEC halted the direct listing process for Best Holdings. ICB Capital Management, a government agency now named as an issuance manager in the Best Holdings prospectus, says they know “nothing” about it.
In the Best Holdings prospectus, in addition to ICB, Chowdhury Nafiz Sarafat’s Race Portfolio and Issue Management Company has been named as Issues Manager.
Padma Bank Chairman Nafiz Sarafat is Chairman of the Board of Directors of the Canadian University of Bangladesh. He has also recently invested in the media and is chair of an editorial board for online media.
Capital market insiders say the “influential quarter” was trying to extort large sums of money by listing the best private holdings directly on the stock market at the behest of a state-owned company, which was stopped by the swift intervention of the regulator.
And in the strategy that Best Holdings Limited wanted to list directly, several people involved in the capital market have said that they see the risk of ‘unlimited fraud’.
Best Holdings: The Finance Minister’s letter has been suspended due to controversy
The BSEC has blocked the direct listing of Best Holdings avoiding the rules
A short prospectus for Best Holdings Limited was delivered in a letter signed by Asadur Rahman, General Manager and Secretary of the Dhaka Stock Exchange Company (DSE) on December 15. The letter was sent only to the directors.
Although ICB Capital Management is named an issuance manager in the prospectus, the government-run Merchant Bank says it has not entered into any such agreement with the company.
Shukla Das, Chief Executive Officer (CEO) of ICB Capital Management, told bdnews24.com on Saturday: “We do not have any agreements with Best Holdings Limited. We are not their trouble manager.
“Yesterday we first heard from the news in the media that our name has emerged as the emissions manager of Best Holdings Limited. We then sent a newspaper protest about this.”
Shukla Das said: “As a general rule, if we want to have a problem manager, the verification will be selected after the request and the approval of the last CEO must be obtained. But none of that happened to us with Best Holdings Limited. “
A commercial banker, speaking on condition of anonymity, told bdnews24.com: “If Best Holdings Limited has lied about the issues manager, then they have to falsify the contract with the issues manager.” They have committed a crime. “
Amin Ahmed, managing director of Best Holdings, was called on his mobile phone to discuss the matter, but did not respond. A text message was sent requesting comment on the allegations, but no response was received.
The Dhaka Stock Exchange (DSE) is also being blamed for this “lie” by various people involved in the capital market.
One of them said: “DSE was supposed to investigate the matter before the brief prospectus was discussed at the board meeting. But not doing so proves that the DSE authorities did not discuss the matter with ICB Capital Management or seek to cover it up in secret. “
A former director of DSE told bdnews24.com: “The prospectus for the company must be published once the listing process begins. From there, the investor can be informed on other topics, including the financial health of the company. But where is the Best Holdings prospect? Why is it hidden?
He said: “This company is working behind the list of a person who has proven to be influential. He is accompanied by a director of DSE ”.
Yunusur Rahman, Chairman of the Dhaka Stock Exchange, drew attention to the allegations, telling bdnews24.com: After that, the matter did not come up at the board meeting.
“The IPO committee report and the inquiries by the Dhaka Stock Exchange regarding Best Holdings Limited are no longer on the board. Details are unknown.”
The Bangladesh Securities and Exchange Commission (BSEC) is seeking an explanation from the DSE on a number of legal issues if it wants to raise Tk 263 crore from the capital market by direct listing on the DSE, avoiding the Best Holdings rule.
BSEC’s letter sent to DSE last Tuesday said that all Best Holdings listing activities should be suspended until these questions are answered.
Direct listing is the method by which a company can be listed directly on the capital market without increasing its paid-up capital and without issuing new shares. Under this rule, the company has the opportunity to sell its shares to investors in the capital market.
According to a directive issued by BSEC in 2016, the country’s two stock exchanges will not allow any private company to enter the capital market through direct listing. Only government companies or state controlled entities will be considered for direct enrollment.
Best Holdings wanted to take advantage of the direct listing, despite the fact that 80.4 percent of its property was private and private.
Sonali, Janata, Agrani and Rupali Bank are the four state banks with a 29.7 percent stake in Best Holdings. Using this as an argument, they demanded that special permission for direct enrollment.
The effectiveness of a letter signed by the finance minister three months ago recommending relaxation of the rules to allow construction companies to list directly on the capital market after the regulator’s measure has also been suspended.
Based on that letter, Best Holdings Limited applied to be listed directly, avoiding the rules.
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