The stock market watchdog has launched an investigation into Beacon Pharmaceuticals based on an intelligence report from the central bank alleging money laundering and market fraud.
The Bangladesh Securities and Exchange Commission (BSEC) has directed the three-member investigation committee to complete the inquiry and submit a report within 60 working days from the issuance of the order on December 28.
The Bangladesh Financial Intelligence Unit (BFIU) of Bangladesh Bank had reported irregular financial transactions between Beacon Pharmaceuticals and other entities under the Beacon Group, as well as serious irregularities related to capital market investments.
BSEC officials confirmed that the managing director of Beacon Pharmaceuticals had been formally notified of the investigation.
If the drug maker is found guilty of committing the offences, the BSEC can impose a financial penalty starting from Tk 0.1 million, according to the Securities and Exchange Ordinance. If the matter goes to court, the company may face a minimum fine of Tk 0.5 million, or the individuals responsible may face up to five years in prison, or both.
The members of the probe committee are BSEC Director Sheikh Mahbub Ur Rahman, Deputy Director Md Sirajul Islam, and Assistant Director Binoy Das.
Earlier this year, a media report alleged that Beacon Pharmaceuticals had deceived its general shareholders by transferring export-related benefits to a non-listed entity within the group.
Although Beacon Pharmaceuticals was once an export-driven company, it stopped reporting exports in FY19. However, investigations revealed that the company had not ceased exports altogether; instead, the export benefits were allegedly shifted to a privately owned sister concern, depriving general shareholders of their rightful share.
Subsequently, the BFIU reportedly found evidence of the illicit practices, along with other financial irregularities, prompting the stock market regulator to initiate a formal investigation.
According to the BSEC, in the greater interest of the capital market and general investors, it is necessary to investigate the alleged fraud and deception.
The commission has therefore constituted the probe committee, exercising its authority under the Securities and Exchange Ordinance, the Bangladesh Securities and Exchange Commission Act, and the Money Laundering Prevention Act.
The committee will examine the volume of irregular loans allegedly extended by Beacon Pharmaceuticals to other companies under the Beacon conglomerate. It will also verify whether products manufactured by Beacon Pharmaceuticals were marketed under the Beacon Medicare banner, and whether funds borrowed by Beacon Pharmaceuticals were used to adjust liabilities of Beacon Medicare Limited.
In addition, the investigation will assess whether loan proceeds obtained by Beacon Medicare Limited were transferred to personal accounts and invested in the capital market, and whether funds from overdraft facilities availed by Beacon Medicare Limited were also used for stock market investments.
Sources said the BFIU report alleged that Beacon Pharmaceuticals had provided irregular loans to another company within the conglomerate.
The report also claimed that medicines manufactured by Beacon Pharmaceuticals were marketed under the Beacon Medicare brand, thereby misleading shareholders.
Moreover, the intelligence report noted that funds borrowed by Beacon Pharmaceuticals had been used to adjust loan liabilities of Beacon Medicare Limited.
Meanwhile, the share price of Beacon Pharmaceuticals fell 0.76 per cent to Tk 105 per share on the Dhaka Stock Exchange on Monday.
According to the audited financial statements for the year ended in June last year, Beacon Pharmaceuticals declared a 21 per cent cash dividend for its shareholders. The company reported a net profit of Tk 946.51 million in FY25, compared to Tk 521.01 million the year before.
As of November 30 last year, sponsors and directors held 39.86 per cent of the company's shares, institutional investors 38.19 per cent, and general investors 21.95 per cent.
farhan.fardaus@gmail.com
© 2026 - All Rights with The Financial Express
