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The Financial Express

BSEC meets BB tomorrow

First meeting between central bank and new leaders of BSEC


| Updated: June 01, 2020 10:55:37


BSEC meets BB tomorrow

The securities regulator will sit with the Bangladesh Bank (BB) tomorrow (Monday) to strengthen coordination between the two regulators for further development of capital market and money market.

"Both the regulators will sit together to discuss as to how more developments of capital market and money market can be ensured removing misunderstanding, if any, in the coming days" a top official of Bangladesh Securities and Exchange Commission (BSEC) told the FE.

The BB governor Fazle Kabir and deputy governors will attend the meeting to be held with the BSEC chairman Prof. Shibli Rubayat Ul Islam and four BSEC commissioners.

The Monday's meeting will be the first one between two regulators after the government has reformed the commission of the securities regulator appointing chairman and two commissioners following the expiry of the tenures of the immediate past chairman and two commissioners.

"We have a plenty of opportunity to work together to ensure further developments of both the money market and capital market," the BSEC official said preferring anonymity.

The BSEC official has laid importance on enhancing coordination with the central bank so that the policy decisions of both the regulators can ensure the interests of money market and capital market.

"We will work together removing misunderstanding, if any, with a vow to ensure due role of both the markets to national economy in coming days. We will try to prioritise our coordination for the interest of the markets," the BSEC official said.

Previously, experts and the stakeholders had criticised lack of coordination between the BB and the securities regulator.

After 2010-11 stock market debacle, the ministry of finance (MoF) issued a circular for maintaining a coordination among the regulators including the central and the securities regulator to avert any negative impact of policy decisions on the capital market.

Nevertheless, some policy decisions were taken by other regulators without discussing with the securities regulator.

"Both the money market and the capital market are inter-linked. So, this correlation should be taken into account while taking any decision," the BSEC official said.

In last few years, the central bank provided some good policy supports including the formulation of special funds for banks to overcome liquidity shortage in the 'ailing' capital market.

Following the demand of the market operators, the central bank earlier also enhanced the investment capacity of the scheduled banks revising their exposure to the capital market.

mufazzal.fe@gmail.com

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