Workshop held on Prohibition of Beneficiary Trading Rules

Bangladesh Securities and Exchange Commission (BSEC) held a workshop on “Bangladesh Securities and Exchange Commission (Prohibition of Beneficiary Trading) Rules 2022”, filling the gaps of the previous regulations which the companies were leveraging for their own interests.

Due to these unethical practices, the stakeholders and investors could not get their maximum profits. While special groups or vested interests have benefited. The new amendments emphasise issues that do not undermine the interests of the stakeholders for their benefit. The practice of correct application of the law will result in good governance in the companies, according to a press release on Thursday.

BSEC Commissioner, Shaikh Shamsuddin Ahmed, expressed that the proper understanding and knowledge of the amended Act and its proper compliance will improve the companies in the long run and also protects the interests of the investors.”

“The Commission has done due diligence for the amendment. If a company wishes in-person discussions for a firm grasp of this regulation, workshops will be arranged. BSEC will always extend a hand of cooperation in this regard. This rule has not been drastically changed. It has only been amended so that no company can harm the capital market or the investors through manipulative behaviour,” he added.

Mohammed Nazrul Islam, additional commissioner of BSEC, presented the principle article in the workshop, discussing value-related information, the definition of beneficiary trading, methods of providing value-related

information, prohibition of beneficiary trading and the punishment of such traders.