IPO, margin rules, mutual fund regulations near completion: BSEC chairman

The Bangladesh Securities and Exchange Commission (BSEC) is in the final stages of formulating margin rules, public issue rules, and mutual fund regulations, as part of ongoing capital market reforms. 

The measures are being developed in line with recommendations from taskforces and investigation committees, BSEC Chairman Khondoker Rashed Maqsood said, while chairing a meeting between a delegation from the Asian Development Bank (ADB) and the BSEC at the commission's headquarters today (9 August).

The ADB team included Manohari Gunawardhena, senior financial sector specialist at its Bangladesh Resident Mission; and Mohammad Rashed Al Hasan, senior project officer (Financial Sector). Senior BSEC officials were also present, according to a press release issued by the BSEC.

Discussions focused on a wide range of market development issues, including reform implementation, modernisation of market infrastructure, upgrading the BSEC's surveillance and ERP systems, enhancing transparency and governance, and strengthening independent directors' capabilities. 

Other topics included developing the bond market, promoting sustainable finance, and introducing commodity exchange and derivative products. 

Participants also discussed expanding the capital market's role in long-term financing and attracting strong local, foreign, and multinational companies to the bourse.

The modernisation of existing capital market laws was another key agenda point. Chairman Maqsood noted that enforcement actions based on investigation committee findings are also underway.

The ADB expressed interest in providing technical assistance for sustainable market reforms and development. 

The BSEC said it looks forward to working with the ADB to jointly implement and modernise reform initiatives in the future.