Committee formed to suggest names for Shariah advisory council

The securities commission has decided to form a new Shariah advisory council (SAC) for the capital market.

As part of this initiative, a 10-member nomination committee has been formed to recommend potential members for the SAC. The committee has been instructed to submit a list of suitable candidates within 30 working days.

The chief of the Bangladesh Securities and Exchange Commission (BSEC) is to serve as the head of the newly-formed nomination committee. The other members of the committee are BSEC commissioner (law), a representative nominated by the vice-chancellor of Islamic Arabic University (holding the rank of professor or equivalent), a representative nominated by the secretary general of Befaqul Madarisil Arabia (Shaikhul Hadith, Chief Mufti, or equivalent), a representative nominated by the chair of the Department of Finance, University of Dhaka (professor or equivalent), a representative nominated by the director general of Islamic Foundation Bangladesh (holding the rank of director), a representative nominated by the dean, Faculty of Theology and Islamic Studies, Islamic University, Kushtia (Professor or equivalent); Khatib of Baitul Mukarram National Mosque or their nominated representative, chairman of the Central Shariah Board for Islamic Banks of Bangladesh or their nominated representative, and convener of the BSEC Shariah Advisory Council Secretariat (who will act as member secretary).

The committee is tasked with recommending eligible Shariah scholars and experts, as outlined in "Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Rules, 2022", said an official letter issued by the BSEC ahead of the Eid vacation.

The BSEC will take necessary steps to form the new SAC based on the committee's recommendations, it added.

"We have dissolved [previous] Shariah advisory council and nomination committee. Now, the SEC has decided to form a new Shariah council. The nomination committee has been formed to evaluate the qualifications of potential members," said BSEC spokesperson and Director Abul Kalam.

Earlier in May 2023, then BSEC chairman Professor Shibli Rubaiyat-ul-Islam issued a directive to form such a council. The aim was to facilitate the issuance of Shariah-compliant securities, develop an Islamic capital market, and protect investors' interests.

To bring discipline to the management of Shariah-compliant securities, the BSEC had introduced a separate set of rules. A gazette on the rules was issued in October 2022.

ROLE OF SHARIAH ADVISORY COUNCIL

SAC is responsible for advising the market watchdog on Shariah-related issues, preparing guidelines, setting standards for Shariah-compliant securities, and giving opinions on whether a security conforms to Islamic principles.

Following the recent political transition, the newly-restructured BSEC under the leadership of Khandaker Rashid Maksud revoked the 2023 directive regarding SAC formation.

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