IPO fraud complaints against Khairul baseless: BSEC

Staff Correspondent | Published: 00:00, Aug 23,2019


The Bangladesh Securities and Exchange Commission on Thursday said that complaints about fund embezzlement and plundering through approving initial public offerings of weak companies against its chairman, M Khairul Hossain, were baseless.

The stock market regulator in a press release signed by BSEC executive director Saifur Rahman made the remark about the complaints.

The BSEC observation came after the Anti-Corruption Commission had launched an investigation into complaints about money laundering and embezzlement by Khairul through IPO approval process.

The ACC on August 7 appointed its assistant director Mamunur Rashid Chowdhury as investigation officer to probe the complaints.

BSEC in the press release criticised newspapers for publishing reports about the ACC investigation.

According to the release, the BSEC chairman does not approve an IPO alone. An IPO is approved at a commission meeting after the BSEC departments concerned examine an IPO proposal and then recommend the IPO.

The issuer, auditor, issue manager and credit rating companies are responsible for assessing companies’ financial documents, it said.

The commission of any country does not examine authenticity of IPO prospectus of any company, it said.

Investors invest in an IPO after analysing prospectus of the IPO issuing company that is open for all, it said.

BSEC members and officials are barred from investing in the capital market and they do not have any beneficiary owners’ account and do not have investment in  any listed or non-listed companies, the statement said.

Khairul has been at the helm of the BSEC since May 15, 2011.

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