In a landmark enforcement action, the Bangladesh Securities and Exchange Commission (BSEC) has declared Professor Shibli Rubayat Ul Islam, former Chairman of BSEC, permanently disqualified from the capital market for his role in irregularities surrounding the Beximco Green Sukuk Al-Istana.
The decision was taken during a BSEC commission meeting on Wednesday, July 30, chaired by current BSEC Chairman Khandaker Rashed Maqsood.
The move marks one of the most significant regulatory crackdowns on past leadership in the history of Bangladesh’s capital market.
Speaking after the meeting, Md Abul Kalam, BSEC Director and Spokesperson, said the penalty stems from serious procedural violations in the approval and issuance of the 5-year, Tk 3,000 crore 'Beximco Green Sukuk Al-Istana' by Bangladesh Export Import Company Limited (Beximco).
The Sukuk proposal was approved in the 779th BSEC Commission meeting on June 23, 2021, with a consent letter issued on July 8, 2021. The instrument was structured as a private placement of Tk 2,250 crore (from existing shareholders and external investors) and an IPO of Tk 750 crore.
Proceeds were intended to fund expansion of Beximco’s textile operations and two renewable energy subsidiaries, Teesta Solar Ltd and Karatoya Solar Ltd, under the banner of green investment.
Each unit had a face value of Tk 100, with a minimum subscription of Tk 5,000.
Key entities involved:
- Originator: Beximco Limited
- Issuer/SPV: Beximco Green Sukuk Al-Istana
- Trustee: Investment Corporation of Bangladesh (ICB)
- Issue Managers: City Bank Capital Market Limited and Agrani Equity & Investment Limited
- Auditor: MJ Abedin & Co Chartered Accountants
- Credit Rating Agency: Emerging Credit Rating Limited (ECRL)
Serious regulatory breaches identified
Abul Kalam revealed that Beximco was granted regulatory exemptions under relevant capital market rules. However, these exemptions were approved before they were officially published in the Bangladesh Gazette, violating due process.
Even more concerning, the public subscription period for the Sukuk was illegally extended from August 23, 2021, the original deadline under regulations, to September 30, 2021, without proper authorisation.
“This extension was made by abusing power,” Kalam stated. “Such actions undermine the integrity of the capital market and mislead investors.”
BSEC takes strong enforcement action
Based on these findings, the BSEC Commission has made two key decisions: Former BSEC Chairman Professor Shibli Rubayat Ul Islam has been declared permanently disqualified from participating in the capital market. Former Commissioner Dr Sheikh Shamsuddin Ahmed has been declared disqualified for five years.
Additionally, the Capital Market Inquiry and Investigation Committee has completed its supplementary investigation into the Beximco Secured Convertible or Redeemable Asset-Backed Green Sukuk. The committee has identified those involved in regulatory violations and irregularities and has taken appropriate action against them.