Conflict of interest mars BSEC's Shibli-led Tk50cr flop roadshow with tainted persons | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 10, 2025
Conflict of interest mars BSEC's Shibli-led Tk50cr flop roadshow with tainted persons

Bangladesh

Mahfuz Ullah Babu
25 August, 2024, 08:35 am
Last modified: 25 August, 2024, 08:44 am

Related News

  • Court imposes travel ban on 11 S Alam Group officials in Tk731 crore loan default case
  • How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
  • ACC files two cases against KCC's ex-mayor Khaleque, wife for illegal wealth
  • Court orders seizure of two houses of ex-minister Zillul Hakim
  • BSEC launches probe into RN Spinning-Samin Food merger process

Conflict of interest mars BSEC's Shibli-led Tk50cr flop roadshow with tainted persons

Mahfuz Ullah Babu
25 August, 2024, 08:35 am
Last modified: 25 August, 2024, 08:44 am
Illustration: TBS
Illustration: TBS

Highlights

  • BSEC held at least 17 roadshows in 11 countries: UAE, the USA, Switzerland, the UK, Qatar, Japan, South Africa, France, Germany, Belgium, and China
  • More than a dozen firms had to spend over Tk50 crore to sponsor the misadventure
  • Sponsors include UCB, Walton, EBL, Pran, GreenDelta Insurance, Minori Bangladesh, Alif Group, the DSE, CSE, CDBL, CCBL and Huawei
  • Foreign investment outflow persisted until chairman Shibli Rubayat departed from BSEC

Bangladesh Securities and Exchange Commission (BSEC) former chairman Shibli Rubayat Ul Islam's initiative at holding a series of pricey roadshows to attract foreign investors fell on its face with ill planned moves and actions that were criticised as "conflict of interest" by financial experts and market professionals. 

The more than Tk50cr series of international roadshows have not only failed to draw new funds but also could not stop the outflow of capital from the country's stock market.

Under the leadership of former chairman Shibli Rubayat Ul Islam, the BSEC organised promotional events across 11 countries since February 2021, financed by sponsorship from companies it regulates.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Shibli took controversial figures with him to the show who were alleged market manipulators and money launderers.

He also took sponsorship money from entities he regulates, which is a clear conflict of interest.

The most criticised action by him was to present himself as a market promoter despite being the chief of the securities regulator. Something foreign fund managers have never seen before, experts say.

Financial experts and market professionals have criticised the BSEC's approach, citing conflicts of interest, inappropriate promotional tactics, and a failure to address underlying issues in the investment climate.

"I never supported the roadshows, as it is not the role of a securities regulator," said former BSEC chairman AB Mirza Azizul Islam.

Mirza, who was the finance adviser to the former caretaker government, also criticised the regulator for seeking sponsorship money from its regulated entities to fund the roadshows, calling it a clear conflict of interest that should not have occurred.

Shibli's self-promotion

A CEO of a merchant bank, speaking anonymously, told TBS that the roadshows seemed to be an effort by the regulatory chief to showcase his work to the now ousted prime minister Sheikh Hasina.

Moniruzzaman of Prime Bank Securities added that investors do not need to hear about growth stories, preferred sectors, or stocks from regulatory officials, as they have their own analyses. What they require is a fair investment environment, which had been lacking until the recent regime change.

Economist M Masrur Reaz, chairman of Policy Exchange Bangladesh, echoed this sentiment, saying, "Foreign fund managers were alarmed by the sight of the securities regulator itself engaging in investment promotion instead of fostering a fair environment for all investors."

"International investors have never witnessed such a misstep by a financial regulator before," he added.

Instead of drawing new investment, these efforts met with continued foreign divestment — a trend that only reversed after the recent fall of the Sheikh Hasina government.

Chartered Financial Analyst (CFA) Md Moniruzzaman, managing director of Prime Bank Securities Ltd, said, "Investment promotion fails without a conducive investment climate and good governance, as foreign investors prioritise these factors along with potential returns."

He noted that foreign fund managers were surprised by the regulator's involvement in investment promotion, given the existing instability due to controlled foreign exchange rates, interest rates, and stock prices.

Moniruzzaman also mentioned that the roadshows featured controversial figures as prominent representatives of Bangladesh, which had a negative impact.

Although he did not specify names, it is evident he was referring to individuals such as former land minister Saifuzzaman Chowdhury, who was reportedly involved in money laundering, and investor Abul Khayer, accused of stock market manipulation, whose presence under the former chairman Shibli Rubayat Ul Islam damaged the image of the country, according to market professionals.

"This is not how roadshows or investment promotions should be conducted in the financial world," said Ahsanur Rahman, CEO of BRAC EPL Stock Brokerage, which leads foreign investor trading services in Bangladesh.

"Roadshows can be effective if done correctly," he added.

In 2018, BRAC EPL and a foreign brokerage firm organised a successful roadshow in the UK, featuring Ifad Autos Limited as an issuer company.

Company officials presented their strengths and potential to about 30 foreign fund managers. The event included a Q&A session with analysts and one-on-one meetings between investors and the issuer, leading to some investors purchasing Ifad Autos shares.

BSEC show was like 'social programme' 

Rahman criticised the BSEC-led roadshows, describing them as more akin to social gatherings of visiting and non-resident Bangladeshis, with notably low participation from international fund managers.

He said organisers failed to adequately compile a list of potential fund managers, particularly from frontier market funds, and invite them to the cities where the investment promotion events took place.

Market professionals who serve foreign investors said that the Bangladesh stock market had posed significant hurdles for foreign investors over the past four years, making the country appear risky for their funds.

They cited issues such as restricted exit opportunities, radical and unpredictable policies, and poor governance as key problems faced by foreign investors.

The long-struggling stock market saw a sharp rebound following the departure of Sheikh Hasina, as investors felt relieved from the manipulative practices previously supported by the then-BSEC chief.

The DSEX, the broad-based index of the Dhaka Stock Exchange, surged by over 13% in the three days after Sheikh Hasina's fall.

Who were the sponsors and why did they do it 

Shibli Rubayat Ul Islam, a Dhaka University professor of banking and insurance with ties to Awami League politics, was appointed BSEC Chairman in April 2020.

During his tenure, he leveraged various syndicates of investors, issuers, and intermediaries to inflate the stock market, leading to manipulated rallies in smaller-cap stocks.

As manipulation and non-compliance issues were increasingly ignored, clean and rational investors gradually began to withdraw.

In February 2021, Shibli Rubayat Ul Islam initiated a series of group foreign trips with a roadshow in Dubai, which compelled many BSEC-regulated entities to incur significant expenses.

More than a dozen firms had to spend over Tk50 crore in total over the past three and half years to sponsor the 17-18 events in 11 countries — UAE, the USA, Switzerland, the UK, Qatar, Japan, South Africa, France, Germany, Belgium, and China.

Sponsors included UCB, Walton, EBL, Pran, GreenDelta Insurance, Minori Bangladesh, Alif Group, the DSE, CSE, CDBL, CCBL and Huawei.

Observers found some of them in nexus with the Shibli Rubayet-led cartel who eyed manifolds return from overlooked non-compliant operations following the relationship building.

On the other hand, most of the firms said that the sponsorship request was an unofficial pressure that could not be ignored as they have regular reliance on the regulatory desks for various approvals.

UCB, under the control of the former land minister's family, spent 2.5 lakh British pounds for the UK roadshow in 2021 after it paid over Tk1.2 crore for the UAE roadshow earlier that year.

A top executive at the bank told TBS it was really tough for us to decline the regulatory chief's request.

Walton had to spend several crores of taka to sponsor three roadshows in the UAE, USA and Switzerland. Officials told TBS that it responded to the BSEC requests eyeing their brand and product promotions in its expanding international markets across America, Asia, and Europe and such spending was not new for them.

However, the feedback from the BSEC roadshows didn't meet its expectations, leading it to decline participation requests in similar events later, said a top executive of the homegrown electronics giant.

Several officials of the bourses of Dhaka and Chattogram said they were forced to pay for the roadshows they sponsored and the story was similar for BSEC-regulated Central Depository Bangladesh Limited (CDBL) and Central Counterparty Bangladesh Limited (CCBL).

Nagad, Pran, Alif Group, and Minori Bangladesh had to secure the regulator's approval for either raising funds from the market or restructuring their firms.

Alif Group's sponsorship of the South Africa roadshow drew controversies as many investors believed it was a strong member of the market manipulation cartel.

 

Top News

BSEC / road show / Corruption

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    Lowest SSC pass rate in 17 years as over 600,000 students fail
  • BNP Secretary General Mirza Fakhrul Islam Alamgir while speaking at a discussion at National Press Club on 10 July 2025. Photo: TBS
    'Backbone of economy will break': Fakhrul says govt should've worked seriously with more qualified people on US tariffs
  • National Consensus Commission chief Ali Riaz speaks at the Foreign Service Academy in the capital’s Bailey Road on 10 July 2025. Photo: Collected
    Chief justice appointment: Consensus reached on two key issues, says Ali Riaz

MOST VIEWED

  • Graphics: TBS
    BB raises startup fund limit, drops upper age barrier
  • Workers pack undergarments at the packing section of a garment factory in Ashulia, on the outskirts of Dhaka, Bangladesh, April 19, 2025. Photo: REUTERS/Fatima Tuj Johora
    After US tariffs, jobs hang by a thread in Bangladesh's garments sector
  • Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
    Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Audit reports of most banks contain cooked up data: BB governor
  • File photo of containers at Chattogram port/TBS
    US buyers push Bangladeshi exporters to share extra tariff costs
  • CA orders law enforcers to complete all election preparations by December
    CA orders law enforcers to complete all election preparations by December

Related News

  • Court imposes travel ban on 11 S Alam Group officials in Tk731 crore loan default case
  • How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
  • ACC files two cases against KCC's ex-mayor Khaleque, wife for illegal wealth
  • Court orders seizure of two houses of ex-minister Zillul Hakim
  • BSEC launches probe into RN Spinning-Samin Food merger process

Features

Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1h | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered- have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1h | Panorama
Women are forced to fish in saline waters every day, risking their health to provide for their families. Photo: TBS

How Mongla’s women are bearing the brunt of rising salinity

22h | Panorama
Dr Mostafa Abid Khan. Sketch: TBS

Actual impact will depend on how US retailers respond: Mostafa Abid Khan

2d | Economy

More Videos from TBS

Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

2h | TBS Programs
The two countries still face major challenges and mutual suspicions

The two countries still face major challenges and mutual suspicions

52m | Others
RMG sector braces for impact as US tariffs hit: Fakhrul

RMG sector braces for impact as US tariffs hit: Fakhrul

2h | TBS Today
Ex-IGP Mamun petitions to turn state’s witness

Ex-IGP Mamun petitions to turn state’s witness

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net