Allegations Surround BSEC Official Anwarul Islam, Raising Concerns Over Capital Market

Serious allegations have been raised against Mohammad Anwarul Islam, executive director and head of the Market Intelligence and Investigation and Market Intermediaries departments of the Bangladesh Securities and Exchange Commission (BSEC), including accusations of market manipulation, harassment of brokerage houses and demands for money.

Several market sources alleged that Anwarul Islam has been using his administrative influence to disrupt the capital market, causing significant losses and uncertainty for ordinary investors. The allegations also include claims that he has acted to advance the interests of individuals associated with the previous government.

Allegations of Political Connections

According to information obtained during an inquiry, Anwarul Islam was reportedly a close associate of former BSEC chairman Shibli Rubaiyat-ul-Islam and former commissioner Tariquzzaman.

Sources further alleged that he had played an active role in protecting the interests of former government adviser Salman F Rahman during the previous administration.

There are also allegations that Anwarul Islam, despite being a government official, accompanied former BSEC commissioner Tariquzzaman to Tungipara and Dhanmondi 32 to lay wreaths, which critics claim was inconsistent with government service regulations and reflected political allegiance.

Brokerage Houses Allegedly Facing Pressure

Market participants have alleged that Anwarul Islam intervenes when the stock market begins showing signs of recovery or an upward trend.

According to the allegations, letters have been sent to various brokerage houses without formal complaints, while representatives have allegedly received threatening phone calls. Some brokerage houses were reportedly questioned about increased trading activity and threatened with penalties, which market participants say has disrupted normal market operations.

The sources further alleged that representatives of some brokerage houses seeking relief from what they described as harassment were asked for substantial amounts of cash.

According to the alleged victims, the names of the finance adviser, finance minister, BSEC chairman and commissioners were invoked in connection with such demands. These claims have not been independently verified.

Allegations Linked to Salman F Rahman's Loans

The allegations also concern brokerage accounts reportedly linked to former adviser Salman F Rahman, including substantial investments and margin loans.

According to sources, between 2023 and 2026, several brokerage houses repeatedly urged the relevant accounts to settle outstanding margin loans. The sources alleged that Salman F Rahman became dissatisfied with the brokerage houses and that Anwarul Islam subsequently used his administrative position to initiate prolonged investigations into them.

The sources further alleged that some firms faced restrictions on their normal operations during the investigations and that punitive measures were taken against brokerage houses that allegedly declined to provide preferential treatment.

Trading Suspensions Raise Concerns

Sources familiar with the matter said the affected brokerage houses had submitted the required documents for licence renewal after completing regulatory clearances and paying the necessary fees to the Dhaka Stock Exchange, Chittagong Stock Exchange and Central Depository Bangladesh Limited.

Despite this, their files have allegedly remained pending.

Market participants also alleged that trading has been suspended at brokerage houses where customer account balances were reportedly in surplus and stock reconciliation had been completed without outstanding discrepancies.

The alleged suspensions have created uncertainty for investors associated with the affected brokerage houses. Sources estimate that around 100,000 small investors could be affected.

Calls for Investigation

Some capital-market analysts have alleged that administrative interventions within the BSEC and Dhaka Stock Exchange are contributing to instability in the market and could undermine investor confidence.

They have called for an independent investigation into the allegations and urged the authorities to ensure that regulatory decisions are made transparently and in accordance with applicable rules.

The allegations against Anwarul Islam have not been independently verified, and the claims described above should be subject to a formal investigation and responses from the concerned officials and institutions.