The Bangladesh Securities and Exchange Commission (BSEC), a pivotal regulator of the country’s capital market, has played a crucial role in facilitating the issuance of Initial Public Offerings (IPOs) by 141 companies from 2009 to 2023. Additionally, the commission greenlit 83 right offer proposals and two repeat public offers by various entities.
According to BSEC Chairman Professor Shibli Rubayet-UL-Islam, the regulatory body has been steadfast in its commitment to fortify the capital market, aligning with the visionary policy and dynamic instructions of Prime Minister Sheikh Hasina. The focus has been on cultivating a robust and stable market, demonstrating resilience even amid global challenges like the Covid-19 pandemic and the Russia-Ukraine war.
Over the past 15 years, BSEC has implemented numerous reforms, amended acts and rules, and organized investment summits internationally. The commission approved 13 Qualified Investor offer proposals and 1951 capital-raising proposals, and facilitated the creation of over 100 mutual funds, alternative investment funds, and Exchange Traded Funds (ETFs).
In a significant move, a new draft Act, combining the Securities and Exchange Ordinance, 1969, and the Bangladesh Securities and Exchange Commission Act, 1993, is under review. This marks a strategic effort to streamline regulations and enhance the governance of the stock exchanges, brokers, and listed issuer companies.
For the robust development of the bond market, a new Debt Securities Rules, 2021 has been introduced. Additionally, the creation of a Capital Market Stabilization Fund (CMSF) underscores the commitment to safeguarding the interests of investors.
BSEC Commissioner Dr Rumana Islam emphasized the commission’s strides in digitizing the capital market, recognizing the significance of technology in ensuring investor resilience. Initiatives include allowing stock exchange brokers to establish their own Order Management Systems (OMS), setting up data centers, and implementing a social media monitoring cell to counteract market rumors.
Furthermore, BSEC has undertaken digital transformation measures such as launching an online Report Submission Platform and introducing a Customer Complaint Address Module. The implementation of an online IPO application submission system and the creation of an online database for Independent Directors are also underway.
The bond defaulter monitoring system is in the developmental phase, showcasing BSEC’s commitment to continuous improvement and innovation in the capital market.
