In a bid to reform the stock market effectively, the government has decided to bring in a team of foreign experts. These experts, with no vested interest in Bangladesh’s capital market, will be tasked with delivering actionable reform recommendations within three months.
The decision was made at a high-level meeting chaired by Chief Adviser Muhammad Yunus today (11 May), Press Secretary Shafiqul Alam said at a press briefing after the meeting.
The meeting was attended by Finance Adviser Salehuddin Ahmed, Special Assistant to the Chief Adviser Anisuzzaman Chowdhury, BSEC Chairman Khondoker Rashed Maqsood, and Secretary of the Financial Institutions Division Nazma Mobarek.
At the start of the meeting, BSEC Chairman Maqsood gave a brief presentation outlining the progress and reform measures taken in the stock market over the past nine months.
Based on the discussion, the CA issued five key directives aimed at revitalising and modernising the market.
“Many vested interests exist within the stock market,” Press Secretary Shafiqul said at the briefing.
“Even when reform initiatives are taken, they are often obstructed by these groups. To counter this resistance, a team of foreign experts—free from any local conflicts of interest—will be engaged. They will propose ways to modernise the market and protect investors and stakeholders, with a report due within three months,” he added.
Earlier, on 7 October last year, the new commission under the interim government formed a task force to get recommendations for the needed reforms in the capital market.
Dhaka University professor of economics Mohammed Helal Uddin, Dhaka Stock Exchange’s former managing director KAM Majedur Rahman, former president of the Institute of Chartered Accountants of Bangladesh AF Nesaruddin, BUET professor of computer science and engineering Md Mostofa Akbar and Dhaka University associate professor of accounting and information system Al-Amin have been made the taskforce members.
Later, in January, a 10-member ‘Capital Market Reforms Focus Group’ was formed with the aim of ensuring overall development of the stock market, increasing investors’ confidence and good governance of international standards.
On 18 March, the government established a high-level four-member committee to strengthen the BSEC and foster the development of the country’s capital market.
The committee, led by Anisuzzaman Chowdhury, while the other members are Professor M Sadiqul Islam of Dhaka University’s Department of Finance and the additional secretary of the FID, with BSEC Commissioner Farzana Lalarukh serving as the member secretary.
However, market intermediaries have alleged that members of the task force and focus groups have vested interests in the stock market. They have criticised the decision to form a reform committee with such individuals.