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Bangladesh Securities Exchange Commission (BSEC), in collaboration with the government, is going to digitise the monitoring system of the capital market in order to combat forgery.
As part of this effort, BSEC will establish a fully digital and transparent governing board for data interoperability (FinTech), which would also ensure the interoperability of software services and operations of different organisations under BSEC.
A memorandum of understanding (MoU) was signed on Sunday between the Bangladesh Computer Council (BCC) of the ICT Division and the Bangladesh Security Exchange Commission (BSEC) at the BSEC Multi-purpose Conference Hall, according to a press release.
The implementation of the Digital Transformation of the Bangladesh Capital Market: Data Interoperability (FinTech Board) will be financed by the World Bank-funded Enhancing Digital Government and Economy (EDGE) Project of BCC, with a target to complete it by 2026.
Ranajit Kumar, Executive Director of BCC, and Mohammed Shafiul Azam, Executive Director of BSEC, inked the MoU on behalf of their respective organisations.
ICT Secretary Md Shamsul Arefin, BSEC Chairman Shibli Rubayat Ul Islam, EDGE Project Director Dr Muhammed Mehedi Hassan, and BSEC Executive Director Mohammed Shafiul Azam attended the programme with BSEC Commissioner Dr Shamsuddin Ahmad in the chair.
The use of ICT in the capital market will not only reduce corruption but also curb the activities of those who are involved in manipulation, fraud, and looting in the share market, said Shibli Rubayat Ul Islam.
He said automation of BSEC and implementation of the FinTech Board at the initiative of the government will ensure interoperability of software-based services and operations among the organisations of BSEC and transparency of the capital market’s functions.
"The digital transformation of the traditional system of share market will help make a cost-effective capital market and bring the trust of the investors," ICT Secretary Md Shamsul Arefin said, adding that the beneficiaries, including investors, would be greatly benefitted as they would get better and faster services.
"We want to strengthen the surveillance system to check for fraud and forgery in the share market. The automation of traditional systems will help create a vibrant capital market," said Ranajit Kumar.
As per the MoU, emphasis will be given on standardising data and performance, implementing technological standards, defining processes and data, and creating a modern and sophisticated digitised ICT infrastructure. This digital transformation aims to enhance the contribution of the capital market to the economy and achieve Vision 2041.
BSEC will establish a fully digital, transparent, and governing FinTech Data Interoperability Board that will emphasise standardisation of data and performance, with a two-fold focus on the implementation of technological standards, the MoU said.
According to the MoU, the Bangladesh Securities Exchange Commission (BSEC) will conduct feasibility analysis, business and technical requirement analysis, project management, quality assurance, and other related activities to ensure the successful implementation of the FinTech Board project.
The Bangladesh Computer Council (BCC) will handle the procurement process and provide technical support for the implementation of the Digital Transformation of the Bangladesh Capital Market and the establishment of the FinTech Board by BSEC.