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Bangladesh Securities and Exchange Commission Commissioner Md Abdul Halim said many institutions involved in stock trading often commit offenses by design.
He, however, did not mention any name to this end.
The BSEC commissioner came up with this remark during a seminar styled ‘How Fintech Can Shape the Next Decade of Bangladesh’s Investment Management’ held in the capital on Monday.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association of Bangladesh jointly organised the event to mark the ongoing World Investor Week 2022.
“In the 2015-19 period a DSE investigation team visited a brokerage house three times and the team found the firm was giving margin loans to its employees and other close associates for the purchase of ‘Z’ category stocks,” said Commissioner Abdul Halim.
“Being punished, the firm finally ensured compliance which the DSE team had ensured in its fifth visit to the company, making it apparent that the firm was deliberately involved in irregularities,” he said.
Dhaka Stock Exchange Chairman, Yunusur Rahman presided over the programme, while DSE Brokers Association of Bangladesh President, Richard D Rosario attended as a special guest.
“Two incidents in the country’s capital market taking place in 1996 and 2010 caused severe harm to many small investors,” Abdul Halim commented adding that after those two incidents, many relevant laws and regulations were reformed to protect the interest of the general investors.
“However, still some challenges are there ahead of us. Technologies are eliminating many irregularities but those behind the technology must also be honest.”
The BSEC commissioner also said that whether it be a stockbroker or another, they must be compliant with all their operations.
DSE Chairman, Yunusur Rahman said World Investor Week aims to promote the investors’ education and protection. To ensure these common goals, the International Organization of Securities Commissions (IOSCO) also released a message on its website.
It emphasises two things— one is sustainable finance and another is investor resilience, he said.
“We are working on developing a modern data center. We are hopeful that we will have a state-of-the-art data center by the end of this year,” Yunusur Rahman said. The securities regulator Bangladesh Securities and Exchange Commission (BSEC) launched the ‘World Investor Week 2022’ Monday to raise awareness among general investors and promote the country’s capital market.
Starting on Monday, the week will continue until October 13.
