DHAKA, Oct 21, 2025 (BSS) - The Bangladesh Securities and Exchange Commission (BSEC) has imposed a lifetime ban on Reaz Islam, chief executive officer (CEO) and chief investment officer of LR Global Bangladesh Asset Management Company Limited, barring him from all activities in the capital market. 
 
The BSEC has also banned its former chairman, Professor Shibli Rubayat-Ul-Islam, for life for allegedly aiding LR Global officials in carrying out the irregularities.
 
The commission took the decisions at the 978th meeting held today at the BSEC conference room in the capital, with BSEC Chairman Khondoker Rashed Maqsood in the chair, said a press release.
 
The regulator also fined him and several others for their involvement in illegal investments and financial irregularities tied to the acquisition and restructuring of Padma Printers and Color Limited, later renamed Quest BDC Limited.
 
According to the BSEC press release, LR Global-managed mutual funds illegally invested a total of Tk 68.64 crore in the loss-making and non-operational company. 

The investment was made at an inflated price of Tk 289.48 per share - despite the company having a negative net asset value (NAV) of Tk 2.74 per share and a negative retained earnings of Tk 2.35 crore as of June 2022. At that time, the company's shares traded at only Tk 13.60 on the Dhaka Stock Exchange's OTC platform.
 
Following the acquisition, LR Global representatives formed a new board for the company, renamed it Quest BDC Limited, and raised its paid-up capital from Tk 1.6 crore to Tk 50 crore through private placement - without publishing any price-sensitive information (PSI), holding an extraordinary general meeting (EGM), or locking in the newly issued shares. The BSEC said these actions directly violated securities laws and harmed the interests of the mutual fund unit holders.
 
The commission fined six former directors of Quest BDC - including Reaz Islam - Tk 1 crore each for failing to comply with regulatory requirements. 

It also ordered LR Global to return Tk 90 crore, including interest, to the six affected mutual funds within 30 days. If the funds are not reimbursed within the deadline, Reaz Islam will be fined Tk 98 crore, while George M. Stock III and Rezaur Rahman Sohag will each face a Tk 1 crore penalty.
 
In addition to the lifetime ban on Reaz Islam, the BSEC also initiated the process to cancel LR Global's license as the asset manager of its six mutual funds, citing gross negligence and violation of investor trust.
 
The commission fined Bangladesh General Insurance Company Limited (BGIC), trustee of the funds, Tk 3 crore for failing to safeguard investor interests, and Rezaur Rahman Sohag, former chairman of Quest BDC, Tk 10 lakh for providing false information.
 
Furthermore, the BSEC has referred allegations of money laundering - involving Tk 24.95 crore transferred from Quest BDC to Thyrocare Bangladesh Limited - to the Anti-Corruption Commission (ACC) for further investigation, citing collusion between Reaz Islam and City Bank Capital Resources' former managing director Ershad Hossain in manipulating share valuations.
 
Due to the auditor's failure to properly discharge professional duties while auditing Quest BDC Limited's financial statements for the fiscal year ended on 30 June 2023 - which harmed the interests of investors - the matter has been referred to the Financial Reporting Council (FRC) for necessary action against Shafiq Basak & Co, Chartered Accountants.