Former IFIC Bank MD fined Tk 5 crore for Aamar Bond scam

The stock market regulator has decided to fine Shah Alam Sarwar, former managing director of IFIC Bank, Tk 5 crore for his involvement in the manipulation of IFIC Aamar Bond.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) declared Salman F Rahman, former chairman of the bank and former adviser to the former prime minister Sheikh Hasina, persona non grata in the stock market for life for misleading investors with a deceptively named bond.

A similar punishment was imposed on his son, Ahmed Shayan Fazlur Rahman, former vice chairman of the bank, and Prof Shibli Rubayat-Ul-Islam, former BSEC chairman, for their involvement in the same scam.

They deceived investors by naming a bond "IFIC Aamar Bond," creating the false impression that it was issued by IFIC Bank, when the actual issuer was Sreepur Township Ltd.

Salman was fined Tk 100 crore, while his son Shayan was fined Tk 50 crore.

The Daily Star exposed the irregularities in a report titled "Aamar Bond not IFIC's," published on November 23, 2023.

Beximco Ltd and SFR Real Estate Ltd had collectively contributed 25 acres of land to form a joint venture on a revenue-sharing basis with Sreepur Township Ltd.

The owners from Beximco were Salman and Shayan, who served as vice-chairman and adviser of the industrial behemoth, respectively.

Shibli, a former Dhaka University professor, was serving as BSEC chairman at the time of the bond's issuance.

At that time, Shah Alam Sarwar was serving as the managing director of the bank.

According to the BSEC, it had approved the "IFIC Guaranteed Sreepur Township Green Zero Coupon Bond" with a face value of Tk 1,500 crore and an issue price of Tk 1,000 crore.

Just a month after being incorporated as a private limited company, Sreepur Township Ltd applied to raise funds in 2023.