BSEC not utilising high-profile body for rebuilding market

Holds only one meeting after forming advisory committee seven years ago

Mohammad Mufazzal | Published: September 02, 2018 09:44:42 | Updated: September 02, 2018 16:22:33

The advisory committee formed by the securities regulator for proposing 'policy options' for the capital market has made hardly any outcome in last seven years.

On March 28 in 2011, the Bangladesh Securities and Exchange Commission (BSEC) had formed the committee comprising renowned market analysts and chiefs of different regulatory authorities.

Only one meeting of the committee was held after its formation with high-profile personalities, officials at the BSEC said.

The objective of forming the committee was to seek advice in developing investors' interest in the securities market, among others.

A member of the advisory committee said he attended only one meeting after formation of the committee.

"I do not know whether any meeting was held after the first meeting that I attended," said the member of the advisory committee.

Mohammad Saifur Rahman, a BSEC executive director, said that holding a meeting of the advisory committee depends on the requirement of the securities regulator.

"It is the jurisdiction of the BSEC to call meetings of the advisory committee. The regulator will call the meeting based on necessity," said Rahman, also a BSEC spokesperson.

According to the terms of reference (ToR), the advisory committee would advice on any matter as may be referred by the BSEC.

"An institution or individual with special knowledge of the subject matter may be invited to any meeting of the committee," reads the ToR.

According to another clause of the ToR, the commission may hold a meeting at any time considered necessary by the commission.

The advisory committee was formed after the 2010-11 stock market debacles.

During the period from 2011 to 2017, the securities regulator brought many amendments to the securities rules along with formulating new ones.

Asked, Dr. Mustafizur Rahman, a member of BSEC advisory committee, said the regulator's decision to constitute the advisory committee was a very good one.

"The committee could have come up with suggestions for framing rules and regulations and better functioning of the stock exchanges and market intermediaries, said Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD).

"I hope the BSEC would reactivate the committee for the sake of market and investors," he added.

Members of the advisory committee are BSEC chairman and its members, one representative of Bank and Financial Institutions Division, one Deputy Governor of Bangladesh Bank, president of FBCCI, president of Institute of Chartered Accountants of Bangladesh, president of Bangladesh Association of Publicly Listed Companies, president of Institute of Cost and Management Accountants of Bangladesh, presidents of Dhaka and Chittagong stock exchanges, chairman of Central Depository Bangladesh Ltd, managing director of Investment Corporation of Bangladesh, president of Bangladesh Association of Banks, and the president of Bangladesh Insurance Association.

Besides, CPD distinguished fellow Dr. Mustafizur Rahman, chairman of Policy Research Institute Dr. Zaidi Sattar and former editor of The Financial Express late AHM Moazzem Hossain were also the members of the committee.

As per the ToR, the BSEC will act as a convener of the committee.

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