Inside Bangladesh’s Capital Market Mafia: Nafeez Sarafat’s Network of Power, Politics, and Profits

For over a decade, Chowdhury Nafeez Sarafat has been at the center of Bangladesh’s capital market — shaping policy, extending fund tenures, and influencing IPOs through an unmatched web of connections.

In Bangladesh’s capital market, few names evoke as much discussion or controversy as Chowdhury Nafeez Sarafat. For years, his presence was felt in nearly every major financial decision, from mutual fund extensions to IPO approvals and corporate takeovers. Insiders say his network of influence cut deep into the country’s financial and political circles.

Race Asset Management, founded with the EBL First Mutual Fund, became Sarafat’s most powerful vehicle. Today it manages thirteen mutual funds — ten of which were supposed to expire after ten years. Instead, their lifespan was extended for another decade, reportedly due to Sarafat’s persistent lobbying.

At the time, BSEC was chaired by M Khairul Hossain, who later admitted that he had initially rejected the extension proposal but was overruled by the late Finance Minister Abul Maal Abdul Muhith. “I had no choice but to comply,” he said.

By 2013, Race was managing ten closed-end funds. Today, the firm’s portfolio stands at over Tk3,200 crore in cost value and Tk2,350 crore in market value. Critics claim these funds were manipulated to serve Sarafat’s financial ambitions and strengthen his ties to powerful figures, including Salman F Rahman and Nazrul Islam Majumder.

When Rahman encouraged investment to buoy Beximco shares, Sarafat reportedly used fund money to purchase them. Later, he allegedly sold them off without Rahman’s consent, leading to a drop in market prices and a rupture in their alliance. Sarafat then pivoted to cultivating relationships with Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder, leveraging them to secure a direct listing for Best Holdings Ltd.

Although initially rejected, the listing was later approved under Professor Shibli Rubayat-Ul-Islam’s BSEC leadership. Placement shares were allegedly allocated to influential families, including those of former police chief Benazir Ahmed. According to insiders, Sarafat used such shares as “political gifts,” ensuring protection and influence across government offices.

His reach also extended into the Coppertech Industries IPO, a smaller yet highly controversial case. Sarafat reportedly distributed placement shares to gain support and pushed for approval despite the company’s disputed financial reports. After lobbying through high-level intermediaries, including the Financial Reporting Council (FRC) and Dhaka Stock Exchange, Coppertech was ultimately listed.

MTB Capital CEO Khairul Bashar Abu Taher Mohammad, who managed the IPO, was later appointed Chief Regulatory Officer of the DSE — a move widely seen as influenced by Sarafat.

Throughout this period, no investigation into Race Asset Management was fully pursued, even when the BSEC decided to conduct inspections. Mutual fund extensions continued to be approved through “ministerial influence,” protecting Race and its leadership.

Former BIFFL Managing Director Farmanul Islam later alleged that Sarafat pressured for a Tk500 crore bond investment in Best Holdings — a claim followed by his forced resignation.

Sarafat’s ventures expanded further — he became Managing Director of Unique Meghnaghat Power Plant through Strategic Finance Ltd (SFL), in partnership with Unique Hotel & Resorts and Qatar’s Nebras Power. When Nebras bought 24% equity for USD 24 million, SFL earned profits exceeding Tk100 crore, despite minimal capital involvement.

Since then, Race Asset Management has adopted reforms under new management, focusing on compliance, governance, and investor protection. Market analysts describe the company’s new strategies, including large block market trades, as steps to rebuild investor trust and modernize its operations.

But the legacy of Nafeez Sarafat remains undeniable — a man whose deep-rooted influence, connections, and controversies left an indelible mark on Bangladesh’s capital market.