Market participants have criticized the Bangladesh Securities and Exchange Commission (BSEC) for excessive regulation over the past 15 years, arguing that it has hindered market growth and benefited political interests rather than promoting good governance.
At an event organized by the Dhaka Stock Exchange Brokerage Association (DBA) on Wednesday, stakeholders in the stock market voiced their concerns about the BSEC’s over-regulation, claiming it has stifled market freedom and hurt investors. The meeting, held at the DSE building in Nikunja, was attended by various experts, including BNP Standing Committee member Amir Khosru Mahmud Chowdhury, former BSEC Chairman Faruk Ahmed Siddiqui, and DSE officials.
Amir Khosru Mahmud Chowdhury criticized the BSEC for operating like a political entity and imposing excessive regulations under the guise of good governance. He emphasized the need for deregulation, arguing that reducing regulatory control would allow stock exchanges to operate as self-regulatory bodies. “The BSEC is a very powerful body. Its role should primarily be as a watchdog, not to micromanage the daily operations of the exchanges,” he stated.
Chattogram Stock Exchange Chairman, Mohiuddin Ahmed, also called for restoring the independence of both the Dhaka and Chittagong stock exchanges, stressing the importance of ending over-regulation and frequent policy changes that have destabilized the market.
Former DBA President, Ahmed Rashid Lali, suggested that certain provisions in the Securities and Exchange Commission Ordinance 1969, particularly Section 2CC, should be abolished, as they have given the BSEC sweeping powers without effectively regulating the market. He called for a review of these provisions in the upcoming parliamentary session.
Banker Sabir Siddique, participating in the discussion, argued that the regulatory authority should not be involved in the listing of companies, a process which should be left to the stock exchanges, with the regulatory body merely being informed.
Liberty News’ economic correspondent states that the participants also pointed out the issue of weak companies being approved for Initial Public Offerings (IPOs) by the BSEC in the past 16 years, which had led to investor losses as many of these companies were downgraded to the Z category. The speakers criticized the BSEC for prioritizing the interests of certain groups over those of investors, accusing the commission of misusing its regulatory powers.
LND/BG
