The task force committee will look into 18 areas of capital market reforms.

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The task force committee will look into 18 areas of capital market reforms.

The Bangladesh Securities and Exchange Commission has formed a five-member ‘Capital Market Reform Task Force’ based on the well-thought-out opinions and recommendations of market-related experts, economists, professional accountants, investors, etc., with the aim of improving the overall development of the country’s capital market, increasing the confidence of investors, and achieving international standards for the capital market. This task force will analyze the major key aspects of the market, formulate recommendations for necessary reforms, planning and implementation.

This information was revealed in a letter signed by Khandkar Rashed Maqsood, chairman of the company, sent from BSEC on Monday (October 7).

It is known that the scope of work of the capital market reform task force formed by BSEC is 18. However, if any other matter is deemed important later, BSEC can increase the scope of work through discussion with the task force. The task force has not been given a specific time frame for formulating its recommendations. However, the BSEC hoped that the task force would submit its recommendations to the BSEC in due course.

The task force committee will look into the 18 scope of work
The proposal for the government’s financial sector policy for the transition identifies the main reasons for the low size of Bangladesh’s capital market and the ratio of ‘GDP to market capitalization’.

To make recommendations to ensure appropriate representation of the Commission in formulating the financial policy of the Government and making policy decisions for financing from the capital market instead of bank loans for long-term financing.

Analyzing the current situation and major challenges of the capital market with the aim of promoting the good governance of the capital market according to international standards and formulating recommendations for solutions.

Strengthening BSEC’s institutional capacity, internal governance, application of technology and automation in internal operations, effective measures to protect information privacy, Recommend administrative structure compatible with other developed and developing countries’ capital market regulatory bodies to enhance the capacity of Bangladesh Securities and Exchange Commission as a statutory body, human resource efficiency Providing recommendations on necessary training, education, seminars, workshops and other internal matters in order to increase, improve the skills of Commission officials and align them with international standards.

Formulation of modernization recommendations with the aim of ensuring transparency, accountability, institutional good governance of the said institutions including raising the supervision activities of DSE, CSE, CDBL, CCBL to world standards;

Making Recommendations for Modernization of Securities and Exchange Commission (Issue of Capital) Rules, 2001 relating to Issue of Equity Securities by way of Private Placement Offer.

Formulation of necessary policies for corporate governance including transparency, accountability, corporate governance, corporate disclosure, accuracy of audited financial reports of listed companies, investor protection and market deepening.

In relation to the application for debt and equity securities issue, the prepared information, documents, asset revaluation report, audited financial report and other related parties such as: issuer company, issue manager and underwriter (merchant banker), valuer and auditor, and other parties’ responsibilities and Making recommendations regarding specific punishments.

In order to ensure transparency, accountability and good corporate governance of market intermediaries, related regulations such as Securities and Exchange Commission (Merchant Bankers and Portfolio Managers) Regulations, 1996, Securities and Exchange Commission (Stock-Dealers, Stock-Brokers and Authorized Representatives) Regulations, 2000, Securities and Exchange Commission (Mutual Fund) Rules, 2001-incl
Making recommendations for updating the relevant regulations.

Rules related to issue of debt and equity securities such as Bangladesh Securities and Exchange Commission (Public Issue) Rules 2015, Securities and Exchange Commission (Right Issue) Rules, 2006, Bangladesh Securities and Exchange Commission (Debt Securities) Rules 2021, Bangladesh Securities and Exchange Commission (Debt Securities) Rules 2015, Formulation of recommendations for modernization of related regulations including Exchange Commission (Investment Sukuk), Rules 2019, Securities and Exchange Commission (Asset Based Security Issue) Rules, 2004.

Formulation of guidelines and necessary recommendations for regular consultation and coordination with stakeholders aimed at safeguarding investors’ interests and increasing confidence.

Formulation of a specific penal code or rules of the peace under the provisions of the existing law to bring parity in the prosecution and punishment of market manipulation, beneficial trading and other irregularities.

Margin Rules, 1999 including modernisation, assessing the effectiveness of existing risk management strategies and world-class online and offline surveillance systems or market surveillance systems equipped with artificial intelligence and business intelligence modules and making recommendations for necessary reforms.

Assessment of the current market structure, market depth, liquidity and product diversification and making necessary recommendations on how to attract domestic and foreign investors.

Capital market governance and investment through increased automation in capital market operations

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