The securities regulator is set to introduce a secure digital authorisation system for investors and tighten oversight of brokerage houses through regular risk-based audits to strengthen investor protection.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan announced the measures on Saturday, saying the commission is implementing a series of reforms without any political interference to strengthen market discipline, improve transparency and restore investor confidence.
Speaking as the chief guest at a mock parliament organised by Debate for Democracy, Mr Khan said brokerage houses would soon be brought under more rigorous supervision, with particular focus on smaller firms that pose higher compliance risks, said a press release.
A key reform involves replacing manual investor signatures with a fully digital authorisation system through a new back-office platform being developed by the Dhaka Stock Exchange (DSE).
Under the new system, brokerage houses will no longer be able to alter an investor's mobile phone number, e-mail address or other account information without the client's digital approval, a move aimed at preventing unauthorised account manipulation and misappropriation of investors' funds.
"The entire investor signature process will be digitised. Once the new system is in place, brokerage houses will no longer be able to manipulate customer records," Mr Khan said.
He also said that the commission had directed the DSE to transform its surveillance department into an artificial intelligence (AI)-based monitoring system within the next year.
According to the BSEC chief, the AI-powered surveillance platform will automatically detect abnormal price movements and help curb market manipulation.
"Once the AI surveillance system becomes operational, market manipulators will find it much harder to manipulate the share prices of weak companies. If any stock records abnormal price movement, trading in that stock will automatically be suspended," he said.
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