The Bangladesh Securities and Exchange Commission (BSEC) will pursue criminal cases, in addition to financial penalties, against those involved in serious or high-profile stock market manipulation, BSEC Chairman Masud Khan has said.

He said ordinary violations would be dealt with through fines where appropriate, but serious cases would not be settled through monetary penalties alone.

Masud Khan said restoring investor confidence requires equal enforcement of rules, protection of investors’ funds and swift action against irregularities.

The BSEC is also working to strengthen oversight of brokerage houses to prevent misuse of clients’ money and assets. The Dhaka Stock Exchange (DSE) has been asked to identify high-risk brokers and introduce preventive monitoring.

To attract strong companies to the market, the commission is prioritising direct listing as an alternative route to traditional IPOs. It is also working to reduce listing-related costs to strengthen the bond market.

The BSEC plans to upgrade the DSE’s automated surveillance system and eventually introduce artificial intelligence (AI) to detect unusual price movements and suspicious trading patterns. The full system could take around a year to become operational.

Masud Khan said his goal is to leave behind a stock market that is safe, transparent, disciplined and rules-based, with stronger investor protection and tougher action against manipulation.