Inside Bangladesh’s Capital Market Nexus: Nafeez Sarafat’s Power and Politics

From mutual fund extensions to power plant profits, Nafeez Sarafat’s career reflects the intersection of money and authority within Bangladesh’s financial system.

In the history of Bangladesh’s financial sector, Chowdhury Nafeez Sarafat stands out as one of its most powerful and polarizing figures. Known for his vast network and strategic maneuvering, Sarafat’s influence spanned mutual funds, IPOs, and corporate power plays that reshaped the country’s capital markets.

At the center of his rise was Race Asset Management, launched through the EBL First Mutual Fund. The firm eventually managed thirteen mutual funds, including ten that were initially supposed to close after ten years but were extended by another decade — a decision widely attributed to Sarafat’s pressure and political connections.

During this period, BSEC Chairman M Khairul Hossain publicly acknowledged that the extension was not his decision but followed the directive of Finance Minister Abul Maal Abdul Muhith. “I had rejected it at first,” he said, “but was compelled to approve it.”

By mid-2024, Race’s total fund assets stood at Tk3,200 crore at cost and Tk2,350 crore at market value. Insiders claim Sarafat leveraged these funds to serve his interests, often aligning with powerful personalities such as Salman F Rahman and Nazrul Islam Majumder. However, after a dispute over Beximco share sales, he shifted alliances toward Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder.

Through these channels, Sarafat pushed for Best Holdings’ listing — first denied but later approved under Professor Shibli Rubayat-Ul-Islam. Placement shares were allegedly distributed to influential circles, including family members of former IGP Benazir Ahmed, to secure political favor.

Sarafat’s aggressive lobbying also shaped the Coppertech Industries IPO, where he reportedly influenced regulators and stock exchange executives to allow its listing despite controversies. The audit firm Ahmed & Akhter was suspended by ICAB, yet Coppertech was listed after regulatory exemptions were granted.

Meanwhile, MTB Capital CEO Khairul Bashar Abu Taher Mohammad, who managed the IPO, was later appointed to a top position at the Dhaka Stock Exchange, reportedly through Sarafat’s patronage.

No major investigation into Race ever materialized. Even when the BSEC planned inspections, they were quietly shelved. Fund extensions continued, and regulatory oversight appeared compromised.

Sarafat also built an empire beyond finance — gaining control over Unique Hotel & Resorts, National Tea Company, and Unique Meghnaghat Power Plant through Strategic Finance Ltd (SFL). When Nebras Power of Qatar purchased 24% equity for USD 24 million, SFL earned profits exceeding Tk100 crore despite limited investment.

Since then, Race Asset Management has worked to reform under new leadership — emphasizing transparency, diversification, and compliance with BSEC standards. Observers note that these reforms mark a clear departure from the firm’s past controversies.

Nevertheless, Nafeez Sarafat’s legacy continues to echo through Bangladesh’s capital markets — a testament to how influence, ambition, and politics once intertwined at the heart of the nation’s financial power structure.