The stock market regulator will not back down from its goal of establishing good governance in the capital market, said Professor Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC).
He remarked on Sunday at a webinar titled 'Broker Services and Investors Rights' arranged by DSE Brokers Association (DBA) of Bangladesh.
The chairman said, "We believe a majority of the investors want good governance and want to follow rules in the capital market. But some are dissatisfied with the commission's decision to reform the rules."
"We want to ensure that the investors feel secure about their investments in the stock market," he added.
"We are trying to bring the Z-category companies into compliance and also to investigate the reasons behind their predicament. We found out that some companies are trying to improve their performance, while the offices of a few cannot be traced," he continued.
The chairman further said, "We have also heard several calls for reform, to ensure compliance in mutual funds. If we can successfully reform the rules for mutual funds, then investors may consider them as better options than FDR."
BSEC Commissioner, Dr Shaikh Shamsuddin Ahmed, said the Commission has observed irregularities in the consolidated customers' accounts of some brokerage firms.
Due to such irregularities, investors are suffering, and the Commission will be compelled to take action against those brokerage firms, he added.
He also said, "BSEC, DSE and DBA play important roles in the market and keep the market active. Therefore, these institutions will be held accountable for any success, as well as failures, which is why, we have to work to increase the rate of success."
BSEC Executive Director, Md Saifur Rahman, said investors occasionally try to make relationships with traders in the capital market. They do not follow the rules of the brokerage house.
"In these cases, many irregularities arise. So, they should transact through the appropriate authorities," he added.
DSE Chairman, Md Eunusur Rahman, was present on the occasion as a special guest.
He said that due to the Covid-19 pandemic, organisations have been going through a difficult time. Therefore, many member organisations have been unable to comply with the regulations.
The organisations will now follow all compliance rules in the consolidated customers' account. DSE will work with the Commission if necessary, he added.
DBA President Sharif Anwar Hossain chaired the webinar, while keynote speaker Richard D' Rozario presented papers in the webinar.