Probe body formed over Fareast insurance anomalies

The Bangladesh Securities and Exchange Commission (BSEC) has formed an inquiry committee to look into the alleged irregularities at Fareast Islami Life Insurance Company.

The two-member committee was formed in the wake of a client's complaint about the non-payment of insurance claims.

The members are BSEC assistant directors Md Shahnewaz and Md Sirajul Islam.

The committee was asked to submit its report within five working days.

BSEC Executive Director Md Saifur Rahman said details would be known after receiving the report.

Earlier, the insurance company also faced allegations of irregularities in its financial reports. The BSEC then decided to conduct a special audit of its financial statements for the past few years.

There are allegations that the company is unable to pay back clients' claims properly. This has reduced the number of clients as well as life insurance policies.

Fareast Islami Life Insurance was listed on the capital market in 2005. It is now an "A" category company.

Until May this year, of its 7.47 crore shares, sponsors and directors held 30.53%, institutional investors 43.08%, foreign investors 0.81%, and general investors 25.58%.    

Its share prices rose by 3.27% to Tk63.2 each on Wednesday.