BO accounts of RACE, Nafeez Sarafat and Hasan Imam impounded

 
The Bangladesh Securities and Exchange Commission (BSEC) has ordered the freezing of the beneficiary owner's (BO) accounts of Chowdhury Nafeez Sarafat, chairman of Bangladesh RACE Management PCL, and Hasan Taher Imam, managing director of the firm. In a directive issued today, the stock market regulator instructed the Central Depository Bangladesh Limited and stock exchanges to take the necessary actions immediately. BSEC is currently investigating Multi Securities and Services Ltd for irregularities in RACE-managed mutual funds.

The commission has taken these measures following a series of issues with Multi Securities and Services, a brokerage firm owned by RACE-managed mutual funds, which impeded the commission's officials from accessing its office during an ongoing investigation.

As part of this action, the BO accounts of RACE's two key figures, Chowdhury Nafeez Sarafat and Hasan Taher Imam have been suspended.
In addition, the BO accounts of the brokerage firm's CEO and Director Jalal Ekramul Kabir, have also been suspended.

According to the order, a BSEC inquiry committee has been investigating the affairs of Multi Securities and Services Ltd and related individuals or companies since 4 July.

On 21 August, at 11:30 am, the inquiry committee conducted a spot visit to the brokerage firm's office, but the officials of the stockbroker refused to cooperate. They were unable to provide any documents or grant access to the office premises.

As a result, the inquiry committee was unable to examine any back-office software, review relevant records, or gather evidence from various documents.
The committee raised concerns about the safety and protection of the assets and securities of the account holders associated with the stockbroker and the securities under the control of the Depository Participant (DP) of the broker.

The committee remains in the dark about suspicious transactions involving Multi Securities & Services, Hasan Taher Imam, Chowdhury Nafeez Sarafat, and related individuals.

In response, the commission has instructed the depository and stock exchanges to ensure the safety and protection of investors' interests and to secure the custody of securities under Multi Securities and Services Limited.

It may be recalled that The Asian Age published a report titled "BO accounts of RACE management funds suspended" which appeared on 26 June 2024.