BSEC overhaul: New chairman prioritises real-time market surveillance, foreign investment

The newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, has vowed to strengthen market surveillance and enforcement while placing a strong emphasis on attracting foreign investment, as the regulator undergoes a major leadership overhaul.

Speaking at his first press conference after assuming office today (4 June), Masud outlined an ambitious roadmap aimed at restoring investor confidence, enhancing transparency, and building a more resilient capital market.

The Financial Institutions Division (FID) appointed Masud Khan as BSEC chairman for a four-year term through a notification this afternoon, just hours after the previous chairman and four commissioners resigned. 

Alongside him, three new commissioners have also been appointed for the same tenure. The ministry also asked them to resign from their current positions for taking charge in the BSEC.

Masud Khan brings over 45 years of experience in multinational and local corporations. He currently serves as the group Chief Executive Officer of Crown Cement and Chairman of Unilever Consumer Care Limited. Previously, he was the chief financial officer of LafargeHolcim Bangladesh for 18 years and spent two decades with British American Tobacco in finance and related roles both at home and abroad.

He also holds key independent directorships, including chairman of the Audit Committee at Singer Bangladesh and Community Bank Bangladesh, and chairman of the Nomination and Remuneration Committee at British American Tobacco. A seasoned academic, Masud has been a lecturer at the Institute of Chartered Accountants of Bangladesh for 45 years.

Other newly appointed commissioners include Advocate Nahid Mahtab, a former deputy attorney general; Tanwir Habib Rahman, finance director of Asa International; and Md Nafeez Al Tarik, managing director of Dhaka Bank Securities Limited.

'BSEC to develop integrated surveillance system'

At the press conference, Masud said the regulator would develop a modern, integrated surveillance system by coordinating with the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL). The system will enable real-time monitoring across the market, significantly enhancing oversight capabilities.

He noted that particular attention would be given to "Z" category securities, where governance weaknesses, disclosure gaps, and investor protection risks are relatively higher.

The new chairman stressed that market manipulation – including insider trading, circular trading, wash trades, pump-and-dump schemes, and front running – would be identified more swiftly, with real-time enforcement actions replacing the traditional delayed response.

"In future, we will not wait seven or 14 days for explanations. With real-time monitoring, we will move towards immediate action," he said.

He added that in cases where there are suspicions of market manipulation, insider trading, or failure to disclose information, stock exchanges would be empowered under BSEC supervision to take immediate steps, including temporary suspension of trading if necessary.

Clarifying the regulator's stance, Masud said the BSEC's objective is not to control prices or interfere with natural market movements.

"Our goal is not to prevent market fluctuations. Our objective is fair price discovery and ensuring equal access to information," he said. "Prices will be determined by the market, not by manipulation."

He warned that those who abuse investor trust, engage in manipulation, or violate securities laws would face stricter enforcement actions than in the past.

The new chairman also highlighted a long-term vision for capital market development, noting that a sustainable and successful market evolves through a structured progression. 

This includes smarter regulation, digitalisation, an increase in quality listed companies, stronger institutional investor participation, higher foreign investment, and robust enforcement and governance frameworks.

"Confidence cannot be built through artificial market support or administrative intervention. It comes from trust, and trust comes from fairness, transparency, consistency, and accountability," he said.

He further pledged greater engagement with market intermediaries, stock exchanges, professional bodies, and policymakers, adding that the regulator would welcome constructive criticism and ensure accountability within its own operations.

Leadership transition

The leadership transition follows the resignation of former BSEC chairman Khondoker Rashed Maqsood, who had been appointed on 18 August 2024. In a statement earlier on Thursday, Maqsood said he stepped down after 21 months in office to focus on personal pursuits.

Reflecting on his tenure, Maqsood said his team took charge during a turbulent period and initiated a comprehensive overhaul of the regulatory framework. During this time, five key rules—including those related to margin, initial public offerings (IPOs), mutual funds, debt securities, and whistleblower protection – were finalised and gazetted.

Additionally, three draft rules on corporate governance, auditing, and corporate restructuring were published for public consultation, while two major laws – the Bangladesh Securities and Exchange Commission Act and the Capital Market Stabilisation Fund Act – were prepared for enactment.