The Bangladesh Securities and Exchange Commission (BSEC) recently formed five committees for reviewing the regulatory framework and different rules, regulations and laws.
Every committee consists of a convener and two members.
Sources said the commission wants to modernise the regulatory framework and different laws for the interest of investors in the capital market.
The securities regulator will review all the rules and regulations in phases which might take around two years.
Members of the committee will scrutinise related rules and regulations based on the International Organization of Securities Commissions (IOSCO), International Financial Reporting Standards (IFRS) and other international standards that are applicable.
BSEC Commissioner Khondoker Kamaluzzaman, Dr Shaikh Shamsuddin Ahmed, Professor Dr Md Mizanur Rahman, Md Abdul Halim are members of several of these committees.
Besides, Executive Directors Md Mahbubul Alam and Mohammad Rezaul Karim, Directors Prodip Kumar Basak and Md Monsur Rahman and Deputy Director Mohammed Fakhrul Islam Mazumder are other members of these committees.
The BSEC formed one committee for reviewing enforcement mechanisms of mutual funds, one for investment schemes, one for capital issue and trustee, one for governance issues of credit rating companies, one for the enforcement mechanism of financial reporting and corporate governance, and one for venture capital and private equity-related regulatory framework.
The committees will examine all laws, rules, regulations, guidelines, notifications and related areas, and check their compatibility with IOSCO, IFRS and other applicable international standards.
After that, the committees will also analyse these rules and regulations suitability with Bangladesh's market environment, practices, business and investors. They will also check whether these rules and regulations match with the requirements of the information technology platform and financial technology.
Later on, the committees will hold a meeting with the related stakeholders and obtain their opinions. The committees will recommend necessary improvement, modification and amendment of the concerned rules, regulations, guidelines and codes.
Besides, the committees will incorporate external panel members and technical assistance, if needed. The remuneration for technical assistance will be determined in the commission meeting on a case to case basis.
Finally, the committees will submit reports possibly within eight weeks but not exceeding 12 weeks after formally receiving their orders.
After the stock market crash in 2010, the commission has carried out major reforms in the capital market. The former commission reformed almost 80 rules, regulations, guidelines and codes.
The stock market witnessed lots of reform measures but not their proper implementation. As a result, investors have not gained confidence despite reforms.
The new commission is about to implement the rules after reviewing the regulatory framework.