1 more month given for probe report on Southeast Bank's loan-funded directorship

The securities regulator has allowed its inquiry committee one more month to investigate and submit findings on the loan-funded directorship of Southeast Bank.

Allegedly, an individual became the bank's director by acquiring its shares through a loan from the bank itself.

This August, the Bangladesh Securities and Exchange Commission (BSEC) formed a three-member probe committee to look into the allegation and to address concerns related to unauthorised appointments and fund misuse in pre-placement shares.

The committee was supposed to submit an investigation report within 60 days. Now, it has been allowed additional 30 days to submit the report to the BSEC as stated in a directive issued on 16 October.

According to a BSEC source, Southeast Bank allegedly provided a Tk200 crore loan to BLI Capital, which is a subsidiary of the listed firm Bay Leasing.

Raiyan Kabir, who is the son of Southeast Bank's Chairman Alamgir Kabir, bought 2% of the bank's shares worth Tk25 crore using Tk15 crore from the loan and became a director. However, he no longer holds the directorial position at the bank.

After forming an inquiry committee, the securities regulator has sought all the relevant documents of Southeast Bank's Tk200 crore loan to BLI Capital Limited in the last week of August.

The BSEC also directed the bank to submit the approval and disbursement reports on its purchase of 1.5 crore EM Power Limited shares as pre-placement.

The bank bought the shares at a total cost of Tk22.5 crore, including a premium of Tk7.5 crore.