AKM Kamal Uddin Chowdhury

DHAKA, Jan 10, 2024 (BSS) - The Bangladesh Securities and Exchange Commission (BSEC), a regulator of the capital market of Bangladesh, allowed a total of 141 companies to issue Initial Public Offering (IPO) during 2009-2023 for ensuring flow of capital to the country’s trade and business sector.
 
Beside this, the commission also approved 83 right offer proposals and two repeat public offers by different companies.

 
Talking to BSS, BSEC Chairman Professor Shibli Rubayet-UL-Islam said according to the visionary policy and dynamic instruction of Prime Minister Sheikh Hasina, BSEC has been working to build a strong and stable capital market giving necessary financial education and all possible protection to investors since 2009.
 
“As per our plan, we have already achieved success in making a sustainable capital market. Due to Covid-19 pandemic and Russia-Ukraine war, many capital markets across the world witnessed ups and downs on a large scale, but Bangladesh's capital market didn't show so much volatility,” he said.
 
During the last 15-year, the BSEC chief informed that the commission has implemented lots of reforms, amended acts and rules, organised investment summits in different countries and disseminated different regulations for broadening the capital market.
 
“We approved 13 Qualified Investor offer proposals and 1951 capital raising proposals of different companies.  We also approved the formation of more than 100 mutual funds, alternative investment funds and Exchange Traded Funds (ETFs),” he mentioned.
 
He also informed that a new draft Act with a combination of the Securities and Exchange Ordinance, 1969 and Bangladesh Securities and Exchange Commission Act, 1993 has been formulated as per decision of the Cabinet Division, which is under review at the inter-ministerial meeting after completion of stakeholders’ consultation.
 
By repealing the Securities and Exchange Rules, 1987, he mentioned, the Securities and Exchange Rules, 2020 has been formulated to ensure good governance of the stock exchanges, stock brokers, stock dealers and listed issuer companies.
 
For development of a strong Bond Market, he said, a new Debt Securities Rules, 2021 has been made by repealing the earlier one to provide better access to debt securities and Islamic Shariah-based securities (ISBS) both under private offer and public offer.
 
He said a Capital Market Stabilization Fund (CMSF) has been formed for safe custody of undistributed dividend and unallocated shares of listed companies; hence a new rule named “Capital Market Stabilization Fund Rules, 2021” has been framed to stabilize the capital market and protect the interest of the investors.

To ensure good governance in the credit rating companies, he said, Credit Rating Companies Rules, 2022 has been made by repealing the earlier one.

To establish commodity exchange and also to introduce commodity derivatives,  new rules namely - Commodity Exchange Rules, 2023 has been made, and under which establishment of a new Commodity Exchange is in process, he noted.
 
To introduce Islami Shariah Based Securities (ISBS) in the capital market, Shibli Rubayet said, a Shariah Advisory Council has been formed under a new rule, namely- Securities Market Shariah Advisory Council Rules, 2022.
 
To issue a new Trading Right Entitlement Certificate (TREC) by each demutualized stock exchanges new rules, namely Trading Right Entitlement Certificate Rules, 2020 has been formulated, he added.
 
Due to implementation of different reform initiatives, he said, the status of the Bangladesh Securities and Exchange Commission has advanced in the Global association of Securities Regulator as “IOSCO Appendix-A Category Regulator”, where Chairman of the BSEC is now at Vice-Chair Position in the Asia Pacific region.
 
He, however, said the commission has conducted Roadshow and Investment Summit to nine developed countries and more than 15 large cities of those countries to promote NRB and foreign investors towards our Capital market.

To support the affected small investors, he said, a Taka 900 crore revolving fund has been formed in two phases.
 
To finance infrastructure development projects through capital market by issuance of Islamic shariah based securities, specially- “Sukuk”, he said, new rules namely “Investment Sukuk Rules, 2019 has been promulgated.

BSEC Commissioner Dr Rumana Islam said the commission has taken various steps to digitise the capital market which is a remarkable stride toward modernisation.

“Technology adaptation is very important to make investors resilient. For that, BSEC has adopted the technology, so that the safety of the investors can be protected,” she added.

She informed that stock exchange brokers have been allowed to set up their own separate Order Management System (OMS) and some brokers have already launched their own OMS.
   
The data center has been set up by DSE as per the directives of the Commission, she added.
 
Rumana Islam informed that a social media monitoring cell has also been set up to prevent rumors in the capital market.

“Besides, Digital transformation consultant appointed for digital transformation of capital markets. An online Report Submission Platform has been launched to collect reports from market intermediaries on a monthly or quarterly basis. 'Customer Complaint Address Module' has been introduced to settle online complaints by investors in the capital market,” she added.

She mentioned that a portal called External Data Request Processing (EDRP) has been launched to exchange information with various government offices.
 
“Implementation of an online IPO application submission system and creation of an online database for Independent Directors is in process.  Enterprise Resource Planning (ERP) system has been introduced in the Commission. Online BO Account has been launched,” she said.
 
She mentioned that the bond defaulter monitoring system is under development.