Committee formed to probe into ’irregularities’ in Strategic Equity Management Ltd

The Bangladesh Securities and Exchange Commission (BSEC) has formed a committee to probe into irregularities in the asset management company, Strategic Equity Management Limited (SEML).

The capital market regulator formed the committee on Tuesday to be headed by BSEC Additional Director Md Emdadul Haque, its Deputy Director Rafiqun Nabi and Assistant Director Md Abu Hena Mostafa, according to a BSEC notification.

As per the notification, the committee has been asked to submit a report to this end within 60 working days after looking into the following, reports BSS.

It shall examine whether the investments of "Alternative Investment Fund of Bangladesh" since inception to present date were in compliance with the investment parameters as per the BSEC's laws and constitutive documents.

The committee will gather and examine valid evidence against all investments of the fund and examine the conflict of interest that arises from investment with a connected person of the fund manager and the trustee.

It will also collect all official bank statements of the fund from the inspection date to the present date and confirm balance at the end of accounting years, and gather valid evidence of interest/profits received from term deposits and other balances with banks/financial institutions over the life of the fund.

The probe will collect and analyse valid evidence of dividend/capital gain received from investments in listed securities and non-listed securities since inception to present date, and analyse and report operating expenses of the fund including BSEC annual fee, management fee, trustee fee and other fees of the fund since inception to present date.

It will also obtain evidence with respect to illicit payments (if any) out of bank accounts of the fund to the benefits of the fund manager and other parties from the inception to the present date.

The BSEC officials will report on the role of fund manager and trustee in the governance and oversight of the fund in compliance with relevant rules and constitutive documents and any other matters as required by the enquiry officers.