BSEC to focus on good governance, transparency

The Bangladesh Securities and Exchange Commission (BSEC) will focus on ensuring good governance and transparency so that the confidence of investors in the stock market makes a rebound, said its chairman, Khondoker Rashed Maqsood, yesterday.

The stock market regulator will also focus on investigating alleged irregularities that took place over the last 15 years, he said.

"I have not brought any magic. I hope that by bringing about a basic form of good governance, transparency and enforcement of rules and regulations will lead to a rebound in the confidence of people on the stock market," he said.

Maqsood made the comment at a press briefing at the BSEC in the capital to inform of his plans on being appointed to the top position at the regulatory body on August 18.

"The new interim government sent me to reboot the system while my first priority would be to bring good governance," said the former strategy and business development adviser of International Finance Corporation.

The stock market has gone astray by a really large margin in the last 15 years and it is a tough and time-consuming task to bring about good governance, he said, hoping for the situation to turn comfortable soon on condition that focus can be retained.

"We don't want to bring back confidence through any artificial mechanism or window dressing like before," said Maqsood.

Among the core activities, the BSEC will focus on ensuring transparency in the market and part of it involves focusing on ending market manipulation, he said.

To ensure good governance in the stock market, the BSEC will start working on itself as good governance cannot be sustained in the market if the BSEC itself is not well governed, he said.

Audits and monitoring on the BSEC's activities will be strengthened, Maqsood said.

Good governance will be ensured in intermediaries and listed companies as they are directly involved with investors, he said.

To do so, the BSEC will focus on monitoring their activities and inclusion of independent directors, he said, pointing out that if the independent directors were linked with the board, they would not be able to play a proper role.

The BSEC will work on it, although there is a long way to go to bring about the amendments, said Maqsood.

At the same time, the stock market regulator will conduct investigations to identify the irregularities of the past 15 years and take necessary punitive measures against those found guilty, he said.

It may come about in phases, but all the irregularities will be investigated, he added.

The BSEC will also try to identify the loopholes in market rules and regulations, said Maqsood.

In the mid-term, the regulator will work towards product development, said the BSEC chairman.

"I came here with a mission to bring about good governance and I will fulfil it," he said.

ATM Tariquzzaman, a BSEC commissioner, said the commission was united on the target to improve the stock market and it would review all the rules and policies, including whether the application of circuit breaker and floor prices truly benefit investors.

"Corruption and irregularities will no more be allowed in the stock market," he said.

Md Mohsin Chowdhury, another BSEC commissioner, was also present.