Staff Correspondent

In a landmark decision shaking the nation’s capital market, the Bangladesh Securities and Exchange Commission (BSEC) has imposed a lifetime ban on Riaz Islam, CEO and Chief Investment Officer of LR Global Bangladesh Asset Management, for misappropriating funds belonging to six mutual funds under the company’s management. The decision was finalized during a BSEC commission meeting on Tuesday.

Adding to the gravity of the scandal, former BSEC Chairman Professor Shibli Rubaiyat-ul-Islam has also been banned for life from participating in the capital market. This marks his second lifetime ban — the first stemming from irregularities involving Beximco bonds. According to the BSEC, the latest action was taken for his alleged involvement in a conspiracy linked to the LR Global fund mismanagement case.

The regulator’s announcement followed a detailed review of transactions that revealed LR Global had invested approximately Tk 69 crore from six mutual funds into Padma Printers, a defunct and loss-making company listed on the OTC market. The investment was made in two phases — first acquiring 51% of Padma Printers’ shares for Tk 24 crore, later renamed Quest BDC Limited, and subsequently injecting another Tk 45 crore through a private placement of new shares.

BSEC found that these investments — made at inflated prices — resulted in the wastage of unit holders’ funds, prompting the commission to order stringent corrective actions.

Under the directive, LR Global has been removed from managing all six affected funds, which include:

  • NCCBL Mutual Fund

  • LR Global Mutual Fund One

  • AIBL First Islamic Mutual Fund

  • MBL First Mutual Fund

  • DBH First Mutual Fund

  • Green Delta Mutual Fund

In addition to the lifetime bans, the regulator imposed financial penalties totaling Tk 9.11 crore. Those fined include Riaz Islam, Rezaur Rahman Sohag, Brigadier General (retd) Sharif Ahsan, Medina Ali, Syed Kamrul Huda, Omar Shoaib Chowdhury, and Bangladesh General Insurance Company (BGIC) — with BGIC receiving the highest fine of Tk 3 crore.

BSEC further ordered Riaz Islam to return Tk 90 crore, including accrued interest, to the six mutual funds within 30 days. Failure to comply will result in an additional fine of Tk 98 crore for Riaz Islam, and Tk 1 crore each for LR Global directors George M. Stock and Rezaur Rahman Sohag.

This sweeping crackdown underscores BSEC’s renewed focus on transparency, investor protection, and accountability within Bangladesh’s capital markets — signaling a strong warning to all asset managers overseeing public funds.

Editor at  – alikodarpolas@gmail.com – Web

RELATED ARTICLESMORE FROM AUTHOR