Strengthening trustees’ role crucial for bond market dev: BSEC

Stock market regulators and key stakeholders have stressed the need to strengthen the role of trustees to boost investor confidence and attract greater participation in the bond market.

This was echoed during a meeting titled "Role of Trustees in Ensuring Compliance in Bond or Sukuk Issuance," organised by the Bangladesh Securities and Exchange Commission (BSEC) today (19 March) at its headquarters. The event brought together senior officials from insurance companies, non-bank financial institutions, and merchant banks that serve as trustees in the bond market.

Chaired by BSEC Commissioner Farzana Lalarukh, the meeting highlighted the critical responsibilities of trustees in ensuring the healthy and orderly functioning of the bond market.

Farzana Lalarukh underscored the pivotal role of trustees in safeguarding investor interests and fostering market growth. 

"The primary mandate of the BSEC is to ensure compliance and maintain a healthy and orderly market. Trustees play a vital role in the smooth management and development of the bond market. Their responsibility to protect investor interests is paramount, making their role a determining factor in the bond market's performance and future progress," she said.

Executive Director Rezaul Karim also highlighted the need for all stakeholders, including trustees, to play a proactive role in attracting investors and bolstering confidence in the bond market. 

He noted that the commission has undertaken structural development initiatives to strengthen the bond market, and reiterated that trustees must enhance their involvement to ensure the market's sustainable growth.

Representatives from participating institutions shared their perspectives and raised questions on various issues discussed at the event. 

The dialogue highlighted the need for greater collaboration among regulators, trustees, and other stakeholders to address challenges and unlock the bond market's full potential.