The Bangladesh Securities Exchange and Commission on Monday formed a task force to prepare a report on necessary reforms in the country鈥檚 stock market, planning and recommendations for raising confidence of the investors and ensure good governance in the capital market.
The stock market regulatory body made the decision in a commission meeting, according a press release issued by the BSEC.
The five-member task force includes Mohammed Helal Uddin, professor at the economics department of the University of Dhaka, KAM Majedur Rahman, a former managing director of the Dhaka Stock Exchange, AFM Nesaruddin, senior partner of Hoda Vasi Chowdhury & Co, Md Mostofa Akbar, professor at the computer science and electronics department of the Bangladesh University of Engineering and Technology, and Al-Amin, an associate professor at the accounting and information systems department of the University of Dhaka.
The task force will start working immediately, the press release said.
All organisations related to the capital market have been instructed to help the task force.
The task force will work with 17 issues for now. However, the BSEC can increase the scope of work through discussion with the task force if any other matter is deemed important later.
The task force will work to recommend formulation of penal code and guidelines regarding market manipulation, prosecution of various irregularities and rationalisation of penalties.
It will work to formulate recommendations on strengthening BSEC鈥檚 institutional capacity, internal governance, necessary initiatives for protection of data and increasing efficiency of employees of the commission.
It will also work to formulate a guideline and necessary recommendations regarding collaborating with stakeholders to protect the investors鈥� interest and increase their confidence in the market.
The other issues include ensuring transparency, accountability, institutional governance, corporate disclosure and accuracy of audited financial reports of the listed companies, and formulating a policy to increase corporate governance and protection of investors and depth of the market.
This task force will formulate necessary recommendations to update various rules related to the market.
Focus groups under the task force will include capital market experts, representatives of regulatory agencies, academicians, journalists, representatives of market intermediaries and others.
The BSEC鈥檚 move came following protests by a section of investors against a continued fall in share prices on the country鈥檚 bourses.
DSEX, the key index of the DSE, decreased by 494.32 points in the past one month since September 1 to close at 5,335.06 points on Monday.
After the fall of Awami Legue government on August 5 amid a student-led mass uprising, stock prices on the DSE witnessed a significant rise amid the investors鈥� optimism.
However, the indices started going down after a few sessions and have continued the negative trend since then.
