BSEC seeks foreign travel ban against Alliance Capital MD
The stock market regulator has requested the police to slap a foreign travel ban on Kh Asadul Islam, managing director of Alliance Capital Asset Management, as he has allegedly embezzled Tk 45 crore.
The Bangladesh Securities and Exchange Commission (BSEC) has sent a letter to Bangladesh Police to this effect.
It comes after the BSEC's inquiry committee found that Islam illegally transferred Tk 45.07 crore from the mutual funds under his management to the bank accounts of the asset management company and withdrew the funds either in cash or through bank transfers to unknown entities, the commission said in the letter.
The fund was transferred between July 1 of 2021 and December 31 of 2022.
"This was investors' money in the mutual funds and Islam engaged himself in the laundering of it," said the letter, which was sent to the additional inspector general of police (special branch) on March 28.
Alliance manages two mutual funds: MTB Unit Fund and Alliance Sandhani Life Unit Fund.
A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. It gives small or individual investors access to diversified, professionally managed portfolios.
As of now, Islam has failed to provide the committee with any reliable evidence on the ultimate use of the investors' money, the letter said.
Furthermore, there is a growing risk that Islam may leave the country in order to avoid legal and criminal consequences, it said.
So, the commission requested the police to take appropriate measures so that the MD and CEO of Alliance Capital can't leave the country.
Yesterday, Islam told the Daily Star that the fund was invested in non-listed companies and it has been recalled. So, the fund will return to the bank account during the inquiry period, which ends on April 24.
"We are making business. Our performances are good. So, we provided 14.5 per cent and 9.5 per cent cash dividend from the two mutual funds last year."
According to Islam, the trustee meeting and auditing for the financial year of 2021-22 are yet to complete. However, it has the capacity to pay the double-digit dividend.