Bangladesh Regulatory Body Embarks To Take Down Market Manipulation
The Bangladesh Securities and Exchange Commission (BSEC) is embarking on a sweeping crackdown on market manipulation and corruption, signaling a renewed commitment to restoring trust and transparency in the country’s financial markets.
Khondoker Rashed Maqsood, the newly appointed chairman of the BSEC, announced the commission’s aggressive stance at a recent press conference, marking a decisive shift in the regulatory landscape.
Maqsood, who assumed his position on August 18 following the resignation of his predecessor Shibli Rubayat-Ul Islam, acknowledged the deep-seated challenges facing the commission and outlined a comprehensive strategy to tackle these issues head-on.
“There were allegations that a number of BSEC officials were involved in various irregularities, including market manipulation,” Maqsood admitted during the press conference. He emphasized that the commission would systematically investigate these allegations and that those found guilty would face appropriate punitive measures.
Maqsood’s appointment comes at a time of crisis for Bangladesh, with the sudden resignation of Prime Minister Sheikh Hasina on August 5 and her subsequent departure from the country. The political instability has only exacerbated the challenges facing the BSEC, which has struggled with governance issues for over a decade.
“We have gone backwards in the past 14 years of irregularities; it will take time to overcome this situation,” Maqsood stated, acknowledging the depth of the problems at hand.
The new BSEC leadership is focusing on two primary goals: the restoration of good governance and the enhancement of transparency in the market. “Our main focus is on bringing back transparency. There should be no manipulation on the market,” Maqsood declared. He highlighted the need for a robust system that prevents market manipulators from returning the market to its previous state of disorder and exploitation.
Maqsood also stressed the importance of good governance at all levels, particularly within market intermediaries such as brokerage houses and merchant banks. He proposed the introduction of independent directors to these institutions as a measure to bolster corporate governance and prevent conflicts of interest.
“Another priority is to establish good governance. Transparency of board representatives should be ensured,” he added.
The BSEC’s commitment to reform extends to its internal operations. The commission has been marred by allegations of corruption, with some officials accused of being complicit in the very market manipulation they were supposed to prevent. Maqsood pledged that these allegations would be thoroughly investigated and that any official found guilty would be held accountable.
Responding to questions about the scope of the commission’s crackdown, BSEC commissioner ATM Tariquzzaman assured that the law would be applied equally to all, regardless of their position or influence. “Law is equal for all, and we are committed to implementing it,” he stated, reinforcing the commission’s resolve to clean house.
While the immediate focus is on rectifying past wrongs, the BSEC is also looking ahead to the future development of Bangladesh’s financial markets. Maqsood emphasized the need to attract well-performing companies to the market, which he sees as essential for the long-term health and stability of the financial system.
The challenges, however, are immense. The BSEC is operating in an environment where investor confidence has been severely undermined by years of mismanagement and corruption. “It will take time to overcome this situation,” Maqsood admitted, but he expressed optimism that with consistent effort, the commission could rebuild the trust of investors.
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