Power, Influence, and the Capital Market: The Nafeez Sarafat Story

From fund management to policy corridors, Nafeez Sarafat’s name remains central to understanding the evolution — and controversies — of Bangladesh’s capital market.

The story of Chowdhury Nafeez Sarafat is one of extraordinary influence and enduring controversy within Bangladesh’s capital market. Once considered untouchable, his reach spanned from mutual fund management to high-profile IPO listings and corporate acquisitions.

Sarafat’s rise was fueled by Race Asset Management, which launched with the EBL First Mutual Fund. Over time, the firm managed thirteen mutual funds, many of which were extended for another decade beyond their original lifespan — a decision widely believed to have stemmed from Sarafat’s lobbying efforts.

At the time, BSEC Chairman M Khairul Hossain revealed that he had initially rejected the proposal but reversed his decision following orders from Finance Minister Abul Maal Abdul Muhith.

By 2024, Race oversaw assets worth Tk3,200 crore at cost and Tk2,350 crore at market value. Critics alleged that the funds were used to advance Sarafat’s personal and political goals. His close relationships with Salman F Rahman and Nazrul Islam Majumder played central roles in his early career, but disputes over Beximco shares caused friction and eventual fallout.

After parting ways with Rahman, Sarafat strengthened his ties with Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder to push through Best Holdings’ direct listing. Though initially rejected, the proposal was later approved under Professor Shibli Rubayat-Ul-Islam’s BSEC leadership. Placement shares were allegedly distributed to influential families, including those of former IGP Benazir Ahmed.

Sarafat also became embroiled in the Coppertech Industries IPO, which was marred by false financial statements. Despite an audit firm being suspended, Coppertech was listed after extensive lobbying, and MTB Capital CEO Khairul Bashar Abu Taher Mohammad — who handled the IPO — was promoted to DSE’s Chief Regulatory Officer, reportedly through Sarafat’s influence.

Regulatory agencies were often reluctant to confront him. Even after a decision to inspect Race Asset Management, it was never executed. Fund extensions continued under political recommendations.

Outside the capital market, Sarafat ventured into large-scale projects, including the Unique Meghnaghat Power Plant. Through Strategic Finance Ltd (SFL), he became a major stakeholder and reaped over Tk100 crore in profits when Nebras Power of Qatar bought a 24% equity share for USD 24 million.

Today, Race Asset Management, under new management, has sought to redefine its reputation — focusing on compliance, accountability, and investor protection. Analysts view this shift as an effort to break from the firm’s turbulent past.

Nonetheless, Chowdhury Nafeez Sarafat’s legacy endures — as both an architect of financial innovation and a symbol of how unchecked power once shaped Bangladesh’s markets.