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A letter sent to the CEOs / CEOs of Sonali, Janata, Agrani and Rupali Banks also sought a complete picture of the minutes of the Board of Directors meeting and approval of the investment in Best Holdings.
The letter was sent to the banks Tuesday with the signature of Senior Undersecretary Siddiqur Rahman of the BSEC and BICM branches of the Department of Financial Institutions.
Best Holdings has shares of state-owned Sonali, Janata, Agrani and Rupali Bank worth Tk 1.6 billion. Each share was bought for 75 rupees. In total, the share of the four banks in Best Holdings is 29.6 percent.
According to the directives of the Bangladesh Securities and Exchange Commission, no company other than a government company or a state controlled entity can now be listed directly on the capital market.
Ignoring that rule, Best Holdings recently requested to increase Tk 263 crore from the capital market through direct listing on the Dhaka Stock Exchange. In this case, they argue that four government banks have shares.
They also use a letter signed by the finance minister three months ago as an argument to relax the rules and allow construction companies to list directly on the capital market.
However, before discussing the request at the Dhaka Stock Exchange (DSE) board meeting, capital market regulator BSEC raised some legal questions and ordered the suspension of all listing activities for Best Holdings.
In the midst of the controversy, the letter signed by the Minister of Finance was also ordered to be suspended.
Best Holdings: The Finance Minister’s letter has been suspended due to controversy
BSEC has blocked the attempt to directly list the best holdings by avoiding the rules
Padma Bank Chairman Nafiz Sarafat is Chairman of the Board of Directors of the Canadian University of Bangladesh.
The Best Holdings prospect includes Chowdhury Nafiz Sarafat’s Race Portfolio and Issue Management and ICB Capital Management Limited, a government firm, as issuance managers. But the ICB says they “don’t know anything” about it.
According to an analysis by a market-related company, around Rs 250 crore has been invested in Best Holdings of mutual funds of Chowdhury Nafiz Sarafat’s asset management company, Reis.
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.
The content of the letter sent to the four banks from the Department of Financial Institutions stated: “In the context of (1) the initiative to register the Hotel La Meridian as a state company without going through the regulatory body and (2) the report of fraud in the Hotel La Meridian “.
“The news has come to the attention of the Department of Financial Institutions. In order to verify the veracity of said news, the following matters have been requested to inform this department “.
The information requested in the letter-
Full picture of Sonali, Agrani, Janata and Rupali Bank’s continued investment in Best Holdings Limited, the owner of #Lo Meridian
# Minutes of the Board of Directors of the banks in case of approval of said investment
# Full details of the financial assessment to invest at 75 rupees per share
# Details of the appointment of the Issuance Manager for ICB Capital Management
36 audit firms were excluded from the list of qualified auditors
Best Holdings: ‘unnotified’ government institution trouble manager
Capital market insiders say the “influential quarter” was trying to embezzle huge 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 swift intervention from the regulator.
And the strategy used by “an influential quarter” to list Best Holdings Limited directly has seen the risk of “unlimited fraud,” according to several people involved in the capital market.
On Monday, the Bangladesh Bank excluded 36 firms from the list of audit firms engaged in auditing listed and unlisted banks and financial institutions.
Artizan Chartered Accountant and Mahfel Hawk & Co., which carried out the audit and revaluation work for Best Holdings Limited, are also on the list of excluded firms.
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