The Bangladesh Securities and Exchange Commission (BSEC) has imposed a ban on 26 individuals and 56 companies associated with the S Alam Group, restricting them from buying, selling, or transferring shares.
This action follows a directive from Bangladesh Bank, which identified concerns related to the financial activities of these entities.
The BSEC has communicated this decision to the stock exchange, acting on a list provided by Bangladesh Bank.
The letter from Bangladesh Bank, dated Tuesday, August 20, highlighted that the directors on the boards of Islami Bank Bangladesh Plc, First Security Islami Bank Plc, Social Islami Bank Plc, Global Islami Bank Plc, Union Bank Plc, and Bangladesh Commerce Bank Limited, along with their representative directors, are closely linked to the Chittagong-based S Alam Group.
The letter also pointed out that various institutions and companies affiliated with the S Alam Group have obtained large loans and investment facilities from different banks under the influence of these directors, often in violation of loan regulations.
This has led to a gradual deterioration in the financial condition of these banks, raising concerns about the recovery of the loans and investments.
Given that the members of these boards are part of the same group, Bangladesh Bank has expressed fears of complications in loan recovery and is considering necessary measures under the Bank-Company Act, 1991.
Before any action is taken, Bangladesh Bank has instructed that the directors of the mentioned banks, their families, and the shareholder organisations that nominated these directors should not engage in any share transactions without prior approval.
A BSEC official confirmed that the commission received the list from Bangladesh Bank and has since forwarded it to the stock exchange to enforce the ban.
Among those affected by the ban are key figures of the S Alam Group, including Mohammad Saiful Alam (S Alam), his wife Farzana Parveen, son Ahsanul Alam, and daughter Maymuna Khatun. Several other family members and associates are also included.
The companies facing the ban include ABC Venture Limited, Armada Spinning, Bangladesh Petrochemical, BLU International, Brilliant Business Company, Broadway Impax Company, C&A Accessories, C&A Fabrics, Carolina Business Enterprises, Dynamic Ventures Limited, Excel Dyeing & Printing, Excelsior Impex Company, Fatehabad Farm, Genesis Textile Accessories & Apparels, Grand Business Limited, Hasan Abasan Pvt. Ltd., Highclass Business Enterprises, Holistic International, Honeywell Securities Corporation, Ideal Flower Mills, JMC Builders, Karnaphuli Foods, Karnaphuli Natural Gas, Kingston Flour Mills, Kings Way Endeavors Ltd., Leader Business Enterprises, Lion Securities, Lionhead Business Resources, Marathon Trade International, Milkyway Impax Limited, Modern Properties, Naushin Steel, Ocean Resort, Padma Export Import Trading, Paradise International, Peaks Business Enterprises, Percepta Endeavors Limited, Platinum Endeavors Limited, Portman Cement Limited, Prasad Paradise Resort, Pusthi Vegetable Ghee, Reliable Enterprises, Shah Amanat Natural Gas, Solid Wake Insurance, Sonali Corp Logistics, Uniglobe Business Resources, Unique Investment Securities, Unitex Cement, Unitex Steel Mills, Unitex Tree Limited, Vibrand Antiverse, Vector Trade & Business, Wesco Limited, and Western Designer Limited.