The Capital Market Power Web: How Nafeez Sarafat Shaped Bangladesh’s Financial Sector

From Race Asset Management to the corridors of financial power, Chowdhury Nafeez Sarafat’s name became synonymous with influence, control, and controversy in Bangladesh’s capital market.

For more than a decade, Chowdhury Nafeez Sarafat dominated Bangladesh’s financial landscape with a mix of ambition, connections, and controversy. His influence spanned from fund management and corporate listings to high-level political lobbying. Market insiders describe him as someone for whom “no door remained closed.”

Under Sarafat’s leadership, Race Asset Management, which began through the EBL First Mutual Fund, grew into a major force managing thirteen mutual funds. Ten of those funds, originally set for ten years, had their tenures extended by another decade — a move many attribute to Sarafat’s behind-the-scenes persuasion.

Former BSEC Chairman M Khairul Hossain revealed that he had initially opposed the extension. “It was only after the late Finance Minister Abul Maal Abdul Muhith’s directive that we approved it,” he said.

By mid-2024, Race was overseeing assets worth Tk3,200 crore at cost and Tk2,350 crore at market value. Insiders claim that the funds often advanced Sarafat’s personal and political ambitions. His circle reportedly included Salman F Rahman and Nazrul Islam Majumder, both key figures in the financial sector. When Rahman encouraged Beximco share purchases, Sarafat followed — only to later sell off the shares abruptly, triggering tension between them.

After distancing from Rahman, Sarafat strengthened ties with Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder. Through them, he lobbied for Best Holdings Ltd. to gain a direct stock exchange listing — ultimately succeeding under Professor Shibli Rubayat-Ul-Islam’s BSEC leadership.

Placement shares from Best Holdings allegedly went to the daughters of former IGP Benazir Ahmed, among others. Reports suggest Sarafat used these shares to secure influence among bureaucrats and intelligence circles.

Sarafat’s lobbying prowess resurfaced during the Coppertech Industries IPO. Despite financial irregularities, he managed to push the listing forward by orchestrating regulatory exemptions. The audit firm Ahmed & Akhter was punished, but the company was listed nonetheless. Later, MTB Capital CEO Khairul Bashar Abu Taher Mohammad, who managed the IPO, became DSE’s Chief Regulatory Officer — reportedly with Sarafat’s assistance.

Despite repeated allegations, Race Asset Management faced little scrutiny during this era. Investigations were delayed, and mutual fund extensions continued under ministerial direction. Even a decision to inspect Race’s books was never implemented.

Sarafat’s financial footprint grew further. Through Strategic Finance Ltd (SFL), he gained control of the Unique Meghnaghat Power Plant, a 584 MW project jointly owned with Unique Hotel & Resorts and Nebras Power of Qatar. When 24% equity was sold to Nebras for USD 24 million, SFL alone earned profits exceeding Tk100 crore.

In recent years, Race Asset Management has made visible strides to restore credibility under new leadership — emphasizing compliance, corporate transparency, and investor confidence.

Yet, for many in the industry, the story of Chowdhury Nafeez Sarafat serves as a case study in power, politics, and the blurred lines that once defined Bangladesh’s financial sector.