BSEC forms inquiry body to look into alleged anomalies in Southeast Bank

Business Report :
The securities regulator Bangladesh Securities and Exchange Commission (BSEC) has formed an inquiry committee to investigate several alleged irregularities in Southeast Bank Limited, including insider trading, and issues like actual shareholding of its board members and their transections.

BSEC Additional Director Md Faruque Hossain will lead the three-member committee, which has been given 60 days to submit the probe report, as confirmed by the regulator’s Executive Director and spokesperson Mohammad Rezaul Karim.

The committee formed Sunday last will investigate the directors’ shareholding, loans, investments, and transactions, and will look into possible insider trading, price manipulation, and securities violations, if any, several BSEC officials familiar with the matter said.

Earlier, the stock market regulator last year had formed a three-member body to look into insider trading allegations against Mamun Azim, the son of Southeast Bank Director Azim Uddin Ahmed.

According to the regulator, the committee was formed as per the directive of the High Court.

Insider trading is defined as the use of privileged access to price-sensitive information to gain through the buy-sell of company shares.

If the allegations are found true, they will be accused of violating insider trading and other securities laws.

The bank’s five founder directors that time had raised allegations of corruption, irregularities, and money laundering against incumbent Chairman Alamgir Kabir.

They also sent a letter to Bangladesh Bank Governor Fazle Kabir in 2021, saying the bank’s deposits were in danger because of the chairman’s corruption, fraudulence, and money laundering.

The question raising directors were MA Kashem, former chairman of the bank; Azim Uddin Ahmed; Duluma Ahmed, current vice chairman of the bank; Rehana Rahman; and Jusna Ara Kashem.