B Mirror Report

To make room for the issuing of new Shariah-based securities on the stock market, the Bangladesh Securities and Exchange Commission (BSEC) disbanded the Shariah Advisory Council and its election committee.

The BSEC directed the dissolution of these two committees in a notification released on Thursday, May 30.

The commission initially established a selection committee in 2023 in accordance with the “Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Rules” of 2022. Later, that same year, the Shariah Advisory Council was established in response to the committee’s recommendations.

Speaking to the media, BSEC spokesperson Md. Abul Kalam stated that a new Shariah Council will be established in response to the suggestions of the new selection committee. Additionally, he stated that these two committees had been disbanded due to disagreements about some members of the existing panels.

A rule to broaden the definition of Shariah-compliant securities had already been developed by the BSEC. Under the title Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Rules, 2022, the gazette was released on October 16, 2022.

The Shariah Advisory Council’s duties include advising on a range of matters in accordance with BSEC’s requirements, developing Shariah-related rules, creating standards for Islamic Shariah-compliant securities, and expressing opinions on whether or not a given security complies with Shariah. By taking this action, BSEC hopes to guarantee openness and appropriate guidelines for stock market investments based on Shariah.