Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said the regulator will take steps to permanently halt the trading of shares of companies that have remained closed and inactive for a prolonged period, aiming to better protect investors and improve market discipline.

Speaking at a CMJF Talk organized by the Capital Market Journalists Forum (CMJF) in Dhaka on Thursday, Khan said that in mature capital markets around the world, shares of companies with no operational or business activities are not traded in the way they are in Bangladesh.

“We will take the necessary measures to permanently stop the trading of shares of such companies in the interest of investors,” he said.

Khan also announced regulatory changes to strengthen market surveillance. He said the Dhaka Stock Exchange (DSE) has now been granted authority to take real-time action against unusual price movements without waiting for prior approval from the BSEC. The stock exchanges have also been empowered to determine circuit breakers, enabling faster responses to market irregularities.

He described these reforms as essential for maintaining market integrity and ensuring effective regulation.

Reflecting on his appointment as BSEC chairman, Khan said he had initially been reluctant to accept the position, noting that previous heads of the regulator had often faced criticism. However, he decided to take the role after receiving assurances from the government that it was committed to reforming the capital market and would allow him to work independently.

Drawing on his experience in multinational companies, Khan said he believes in a planning-based management approach. He revealed that he had spent three months studying and preparing reform plans for Bangladesh’s capital market before assuming office.

Khan also emphasized the importance of developing the country’s mutual fund sector, saying a larger mutual fund industry is essential to deepen the capital market. Since most retail investors lack the expertise to analyze and select quality stocks, the BSEC is planning to introduce a certification system for financial advisers, in line with international best practices, to help improve investment decisions.