Nafeez Sarafat’s Rise in the Capital Market: Influence, Controversy, and Control

Nafeez Sarafat’s story is one of power and persuasion. His connections across finance, politics, and regulation shaped Bangladesh’s capital market for over a decade.

Within Bangladesh’s capital market, few individuals have amassed the kind of influence that Chowdhury Nafeez Sarafat once commanded. He played a central role in reshaping the mutual fund industry, orchestrating stock listings, and cultivating relationships with some of the most powerful figures in finance and politics.

Sarafat’s story is closely tied to Race Asset Management, which started with the EBL First Mutual Fund and expanded to manage thirteen funds. Ten of these funds, originally due for liquidation after ten years, were instead extended for another decade — a controversial decision reportedly secured through Sarafat’s influence.

Former BSEC Chairman M Khairul Hossain later confirmed that he had initially opposed the extensions but was instructed by Finance Minister Abul Maal Abdul Muhith to approve them. “The directive came from the top,” he said.

By 2024, Race’s funds totaled Tk3,200 crore in cost value and Tk2,350 crore at market valuation. Many insiders allege that Sarafat used these funds to pursue personal financial gains and strengthen his network, which included Salman F Rahman and Nazrul Islam Majumder. However, when Sarafat sold off Beximco shares without Rahman’s consent, the relationship deteriorated.

Undeterred, Sarafat aligned himself with Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder, pushing for Best Holdings’ direct stock listing. Though initially rejected, the approval was granted later through Professor Shibli Rubayat-Ul-Islam’s BSEC leadership. Placement shares were reportedly allocated to influential individuals, including former IGP Benazir Ahmed’s family.

Sarafat’s name also surfaced during the Coppertech Industries IPO. He reportedly distributed placement shares to key figures to secure approval, even amid evidence of financial irregularities. The audit firm Ahmed & Akhter was suspended, but Coppertech’s listing went ahead after behind-the-scenes lobbying.

Sarafat’s influence was such that MTB Capital CEO Khairul Bashar Abu Taher Mohammad, who managed the IPO, later ascended to a top role at the Dhaka Stock Exchange with his backing.

Despite repeated allegations of misconduct, investigations into Race Asset Management were rarely pursued. Inspections were delayed, and fund tenures continued to be extended under political cover.

Beyond capital markets, Sarafat diversified into major industries — becoming Managing Director of Unique Meghnaghat Power Plant through Strategic Finance Ltd (SFL), which owned nearly 39% of the project. When Nebras Power of Qatar acquired 24% for USD 24 million, SFL earned more than Tk100 crore in profit.

In recent years, under new management, Race Asset Management has worked to rebuild trust — focusing on transparency, accountability, and investor protection. Analysts view its renewed engagement in large-scale transactions as a positive shift toward institutional reform.

Still, the imprint of Nafeez Sarafat remains visible. His story reflects both the possibilities and perils of concentrated influence within Bangladesh’s financial system.