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

Monday
July 14, 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
MONDAY, JULY 14, 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

  • Economist Abul Barkat sent to jail in Tk297cr embezzlement case
  • 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

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

  • Infograph: TBS
    From fuels to fruits, imports slump on depressed demand
  • Graphics: TBS
    Bangladesh Bank buys $171m at higher rate in first-ever auction
  • TBS Sketch
    Framework agreement: What experts say about US 'security concerns' regarding Bangladesh

MOST VIEWED

  • RAB Director General AKM Shahidur Rahman speaks at the press briefing on a fake bomb threat on Biman Bangladesh flight on Saturday, 12 July 2025. Photo: TBS
    Mother faked bomb threat on Biman flight to stop married son from flying with girlfriend: RAB
  • Bangladeshi garment workers make clothing in the sewing section of a factory in Gazipur, Bangladesh, April 9, 2025. Photo: REUTERS/Mohammad Ponir Hossain/File Photo
    Some Walmart garment orders from Bangladesh on hold due to US tariff threat
  • Infographic: TBS
    Dollar price plummets by Tk2.9 in a week as demand wanes
  • From Gulf to Southeast Asia, why Bangladeshis are facing visa denials
    From Gulf to Southeast Asia, why Bangladeshis are facing visa denials
  • Bangladesh and US hold tariff talks on 11 July 2025. Photo: CA Press Wing
    Dhaka, Washington yet to agree on 20% of US tariff conditions: BGMEA
  • Energy Adviser Fouzul Kabir Khan speaking about tariff negotiations with United States on 13 July 2025. Photo: TBS
    US wants a framework agreement with Bangladesh that includes their security concerns: Fouzul

Related News

  • Economist Abul Barkat sent to jail in Tk297cr embezzlement case
  • 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

Features

Photo: Collected

Grooming gadgets: Where sleek tools meet effortless styles

15h | Brands
The 2020 Harrier's Porsche Cayenne coupe-like rear roofline, integrated LED lighting with the Modellista special bodykit all around, and a swanky front grille scream OEM Plus for the sophisticated enthusiast looking for a bigger family car that isn’t boring. PHOTO: Ahbaar Mohammad

2020 Toyota Harrier Hybrid: The Japanese Macan

1d | Wheels
The showroom was launched through a lavish event held there, and in attendance were DHS Motors’ Managing Director Nafees Khundker, CEO Imran Zaman Khan, and GMs Arman Rashid and Farhan Samad. PHOTO: Akif Hamid

GAC inaugurate flagship showroom in Dhaka

1d | Wheels
After India's visa restriction, China's Kunming is drawing Bangladeshi patients

After India's visa restriction, China's Kunming is drawing Bangladeshi patients

2d | Panorama

More Videos from TBS

When the Threat Is Inside the White House

When the Threat Is Inside the White House

10h | Others
Shooting in Pallabi: What the police are saying

Shooting in Pallabi: What the police are saying

11h | TBS Stories
News of The Day, 13 JULY 2025

News of The Day, 13 JULY 2025

13h | TBS News of the day
Countries where Bangladeshis are not getting positive responses to their visa applications

Countries where Bangladeshis are not getting positive responses to their visa applications

12h | TBS Stories
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