BSEC to take action against corrupt officials within six months

The Bangladesh Securities and Exchange Commission (BSEC) has announced its intention to take action within the next six months against officials and employees of capital market-related institutions who face specific allegations of misconduct and corruption.

The regulator, on 18 May, sent a letter to the Financial Institutions Division of the finance ministry, detailing a timeline for implementing five key directives issued by the chief adviser during a high-level meeting held on 11 May.

The directives include: Offloading shares of foreign and state-owned enterprises, increasing tax gap between listed and unlisted companies, initiating reform measures with the help of foreign experts within three months, taking strict action against irregularities and corruption in the capital market, and enabling large companies to raise funds from the capital market instead of relying on bank loans.

To ensure timely execution, BSEC, in its letter, has outlined responsibilities for various government bodies. For instance, the Ministry of Industries and the Financial Institutions Division are tasked with offloading foreign and state-owned shares within six months. The National Board of Revenue (NBR) is expected to introduce incentives for the capital market in the upcoming budget. Bangladesh Bank is to take necessary steps within six months to facilitate fund-raising from the capital market as an alternative to bank borrowing.

Speaking at a seminar organised by the DSE Brokers Association on Saturday, BSEC Commissioner Mohsin Chowdhury said that the regulator is actively working to implement the chief adviser's five-point plan. 

He mentioned that BSEC is closely coordinating with the finance ministry, industries ministry, and Bangladesh Bank, and has provided them with specific timelines for execution.

However, concerns remain over the depth of the government's commitment. At the same seminar, Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), questioned the government's actual progress on these fronts—particularly in terms of incentives for foreign investors, benefits for listed firms, resolving legal ambiguities, and listing state-owned enterprises. 

He expressed surprise that three or four of the five directives appear to be the government's responsibility alone.

Debapriya further emphasised that for reforms to have long-term impact, they must be "specific, actionable, and implemented through a transparent and inclusive process that fosters shared ownership." 

He cautioned that relying solely on foreign technical expertise is unsustainable without domestic ownership.

Earlier in April, 21 BSEC officials were suspended for violating service rules amid a rare employee protest demanding the resignation of BSEC Chairman Khondoker Rashed Maqsood.

While a probe committee formed by Maqsood has submitted multiple reports on market irregularities, critics cited that no significant actions have yet been taken based on their findings.