New BSEC chairman Maqsood vows to prevent irregularities in stock market

Khondoker Rashed Maqsood. TBS Sketch

The newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), Khondoker Rashed Maqsood, has pledged to prevent any new irregularities or corruption in the stock market. 

He made the statement during his first address to the media after assuming office today. He further emphasised his commitment to restoring investor confidence and addressing the issues that have plagued the market in the past.

Maqsood said, "We will thoroughly investigate the reasons behind previous irregularities in the stock market and take steps to eliminate them. It is not enough to simply implement corrective measures; if the root causes are not addressed, these irregularities may resurface."

"Currently there are approximately 15 lakh active investors and it has become important to regain their trust," he said, adding that it was necessary to think about how to increase the number of investors to 25 lakh and eventually reach 50 lakh within the next four years.

The new chairman pointed out that many beneficiary owner (BO) accounts are currently inactive and to bring these investors back into the market, their confidence must first be restored. 

He noted that the stock market has significant room for growth, given the size of the country's economy. "Even neighbouring Nepal is advancing in the stock market, therefore we need to take steps so that everyone can participate," he added.

Commenting that the stock market is a place for long-term investment, Maqsood said, "We have not yet reached that stage. To get there, we need to build the necessary infrastructure so that ordinary people can safely invest their money for 7 to 8 years."

When asked about reforms, Maqsood said, "Reforms are underway across the country, and BSEC is no exception. In foreign institutions, significant changes are made every three years through deep observation to achieve better results. Our stock market needs to move towards such reforms as well."

He further mentioned that while BSEC will coordinate with other capital market regulators, it intends to operate independently for the betterment of the stock market. He also plans to engage with BSEC's senior officials to develop short, medium, and long-term strategies.

Khondoker Rashed Maqsood brings over three decades of experience in the banking sector, both domestically and internationally. 

He served as the managing director of Citibank NA Bangladesh from 2011 to 2017 and held leadership positions at Citibank NA Indonesia from 2008 to 2010. He also served as the managing director of NRB Commercial Bank and Standard Bank. 

Maqsood, in recent times, worked as an advisor for Strategic and Business Development at the International Finance Corporation (IFC), a member of the World Bank Group. He holds an MBA in Finance from the Institute of Business Administration (IBA) at Dhaka University.

His appointment comes after the resignation of BSEC's former chairman, Professor Shibli Rubayat-Ul-Islam, on 10 August. 

On 11 August, Mohammad Mohsin Chowdhury was appointed as acting chairman, followed by M Masrur Reaz's appointment as chairman on 13 August. 

However, Reaz declined the position, leading to Maqsood's appointment by the Ministry of Finance on Sunday.