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The Financial Express

Prof M Khairul ends his 9-yr tenure as BSEC chief today

Mohammad Mufazzal | Published: May 14, 2020 10:06:48 | Updated: May 18, 2020 10:34:26


File photo (collected) File photo (collected)

The ever longest period of a chairman of the Bangladesh Securities and Exchange Commission (BSEC) ends today (Thursday) on completion of his era of nine years.

Professor M Khairul Hossain is the only one chairman of the securities regulator whose tenure was extended twice and his last extension drew controversies.

Before Mr. Khairul, Sultanuzzaman, Dr Md Harurn ur Rashid, M. A. Syed, Moniruddin Ahmed, Dr. AB Mirza Azizul Islam, Faruq Ahmad Siddiqi and Ziaul Huq Khandker served the BSEC as chairmen.

Asked about his own evaluation on his job at the BSEC, Mr. Khairul said he is not willing to speak detail during his departure.

"I tried my level best and a total of 103 major reforms were completed during my tenure," the BSEC chief told the FE.

Khairul claimed there was no infrastructure and surveillance in the market before his joining as BSEC chief. "I think, I have changed many things."

After 201-11 stock market debacle, Mr. Khairul was appointed the BSEC chairman for three years on May 15, 2011 following the quick overhauling at the regulatory body.

Later, his tenure was extended for four years as the tenure of the BSEC chief was turned into four years in line with an amendment brought by the commission.

On completion of four years, the tenure of Mr. Khairul was again extended for another term of two years which will end today (Thursday).

The then finance minister AMA Muhith was abroad when Khairul's tenure was extended for the last time.

The decision drew flaks and even the finance minister also reportedly raised question about the legality of Khairul's extension.

Asked whether the BSEC decisions were influenced by the vested quarters during his tenure, Khairul said not a single decision was influenced by others.

"You will not get any evidence of others' influence exerted against the regulatory decisions," Khairul said.

The commission led by Mr. Khairul off and on faced criticisms for its approval to many IPO (initial public offering) proposals as the share prices of many companies went down below offer prices and even below the face value within a short span of time of listing.

The BSEC under his leadership approved a total of 91 IPO proposals in nine years. Of these IPOs, 83 were approved under fixed price method and the remaining 8 under the book building method.

Of 83 companies, the share prices of 22 or 26.50 per cent companies presently are below their face value of Tk 10. Besides, the share prices of a significant number of companies also went down below their offer prices.

The securities regulator defended the criticism saying that they approve disclosure-based IPO proposals prepared by the issue managers in association with the auditors.

The BSEC chief said the IPO proposals are approved by the commission comprising of the chairman and commissioners.

During the tenure of Mr. Khairul, the newsmen's entry into the BSEC office was stopped and the newsmen turned back from the gate.

Later, the securities regulator, however, ensured the newsmen's entry following strong demand and meetings held with the BSEC officials in this regard.

Before the expiry of Mr. Khairul's tenure, the tenure of BSEC commissioner Dr. Swapan Kumar Bala ended on April 18.

The tenure of another commissioner professor Helal Uddin Nizami expired on May 3.

Presently, there is only one commissioner namely Khondoker Kalamuzzaman is at the BSEC.

The insiders said the government is set to appoint a new chairman and three commissioners at the BSEC within one or two days.

mufazzal.fe@gmail.com

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