Shibli Rubayat-Ul-Islam, former chairman of the Bangladesh Securities and Exchange Commission (BSEC), has been declared 'persona non grata' in the capital market for life, while Sheikh Shamsuddin Ahmed, a former commissioner, has been banned for five years.
This significant decision was made on Wednesday at the 965th board meeting of the BSEC Commission, according to a press release.
The proposal for Bangladesh Export Import Company Limited's (Beximco) Tk3,000 crore, five-year Beximco Secured Convertible or Redeemable Asset-Backed Green Sukuk was approved at the 779th commission meeting held on June 23, 2021.
The proposed Green Sukuk was approved for issuance of Tk 2,250 crore through private placement (Tk 750 crore from existing shareholders and Tk1,500 crore from other investors excluding existing shareholders), and Tk 750 crore through an initial public offering (IPO).
The funds raised through this Sukuk were intended to expand Beximco Limited's textile unit operations and be utilised in two of its subsidiary renewable energy projects: Teesta Solar Limited and Karatoya Solar Limited, for environmental development and conservation.
Each unit of the Sukuk had a face value of Tk 100, and the minimum subscription amount was Tk 5,000.
Beximco served as the originator, Beximco Green Sukuk Al-Istisna'a as the issuer or trust/SPV, Investment Corporation of Bangladesh as the trustee, City Bank Capital Resources Limited and Agrani Equity & Investment Limited as the issue managers, M. J. Abedin & Co., Chartered Accountants as the auditor, and Emerging Credit Rating Limited (ECRL) as the credit rating agency for this Sukuk.
For this purpose, Beximco was granted exemption by the commission from certain rules of the relevant regulations.
However, the application for the issuance of this Sukuk was approved by the commission on June 23, 2021, even before the exemption notification was published in the government gazette.
The Commission then issued a consent letter on July 8, 2021.
Subsequently, the public subscription period for the Sukuk was extended unethically and through abuse of power from August 23, 2021 (the last subscription period according to regulations) to September 30, 2021. An investigation and inquiry into this matter was conducted by the 'Capital Market Inquiry and Investigation Committee,' and its report has been submitted to the Commission.
Considering these relevant issues, the Commission has taken the following decisions:
It has been decided to declare Shibli Rubayat-Ul-Islam, the then chairman of the BSEC, 'persona non grata' in the capital market for life, and Sheikh Shamsuddin Ahmed, the then commissioner, 'persona non grata' for five years.
Furthermore, it has been decided that an additional investigation by the commission will be conducted on the Beximco Secured Convertible or Redeemable Asset-Backed Green Sukuk, building upon the inquiry and investigation already carried out by the 'Capital Market Inquiry and Investigation Committee.' Necessary action will be taken against all involved in the irregularities and rule violations related to the Beximco Secured Convertible or Redeemable Asset-Backed Green Sukuk.