BSEC over-regulated but lacks self-regulation: Amir Khasru

Amir Khasru Mahmud Chowdhury, a Standing Committee member of the BNP, has sharply criticised the Bangladesh Securities and Exchange Commission (BSEC), labelling it an "over-regulated institution" suffering from a profound "lack of self-regulation." 

This, he said, has led to a persistent transparency crisis within the capital market.

Speaking yesterday at a workshop titled "Restructuring and Realities of the Capital Market," jointly organised by the Economic Reporters Forum (ERF) and the DSE Brokers Association at the ERF auditorium in Dhaka, Khasru said, "The most important reform needed in the capital market is to overcome the crisis of confidence. Investors must be assured that the market will be managed properly." 

He pledged that if the BNP returns to power, they would "take ownership of the capital market and take full responsibility for its development."

DSE President Mominul Islam, CSE President AKM Habib ur Rahman, and DSE Brokers Association of Bangladesh President Md Saiful Islam were also present as special guests at the event.

Khasru further said, "The core responsibility of BSEC is regulation, but it has taken on the role of a market operator. It is now involved in day-to-day operations of the market. At the same time, the regulator itself has become highly regulated, limiting the development and effectiveness of actual market operators."

He emphasised the need for the BSEC to ensure self-regulation and to function solely as a regulatory body with transparency and accountability. "We don't need to bring in people from abroad. There are plenty of competent professionals in the country who understand the capital market very well."

Khasru mentioned that many Bangladeshis working abroad are successfully managing investment funds and are interested in managing funds in the local market. "However, when they see the existing challenges and lack of professionalism at the BSEC, they become discouraged."

He also pointed out the problems with the listing of weak and low-performing companies in recent years. "These issues must be addressed to ensure that fundamentally strong and multinational companies are encouraged to enter the market."

The BNP leader added that several good companies in the country's export processing zones (EPZs) are willing to be listed, but in the current market environment, they are not interested.

"We need to adopt global best practices in the capital market. While automation and modern systems have been introduced, they must be effectively run through coordinated efforts across all market wings. A few good companies and limited reforms alone cannot stabilize the market," he said.

In his address, DSE President Mominul Islam said, "Though various initiatives are being taken to improve the capital market, the results are not yet visible. One of the problems is that when regulations are designed, they assume there's significant manipulation in the market. As a result, the rules become so stringent that even good companies face excessive compliance costs and avoid entering the market."

He stressed the need to allow market stakeholders to operate more freely and called for necessary reforms in line with that vision.