BSEC Chief Pledges Smart Regulation, Tough Enforcement
Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has announced a comprehensive plan to transform the country’s capital market into a technology-driven, transparent, and accountable ecosystem by gradually digitizing regulatory operations, market surveillance, disclosures, licensing processes, and investor services.
Speaking at a press conference after assuming office at the BSEC headquarters on Thursday, June 4, he also warned of stricter enforcement than ever before against market manipulation, insider trading, information leaks, and violations of securities laws.
Masud Khan said restoring investor confidence would require the establishment of smart regulatory systems, digital transformation, the listing of quality companies, increased institutional and foreign investment, and a stronger market oversight framework.
“We want to build a technology-enabled regulatory institution that is faster, more transparent, more efficient, and more accessible to stakeholders,” he said.
According to the new chairman, the commission plans to bring regulatory reporting, disclosures, licensing, approvals, market monitoring, and investor services entirely under digital platforms.
He noted that Bangladesh’s capital market has faced multiple challenges in recent years, resulting in declining investor confidence, reduced interest among quality companies in seeking listings, and lower participation by foreign investors. Many retail investors have incurred losses, while the mutual fund sector has struggled to gain the desired level of public trust.
Masud Khan stated that the commission’s long-term objective is to transform Bangladesh’s capital market from a retail investor-driven frontier market into a transparent, credible, and institutionally driven emerging market.
Addressing regulatory reforms, he said excessive regulation often increases business costs and hinders market development. As a result, existing rules, reporting requirements, and approval procedures will be reviewed to establish a risk-based and principle-driven regulatory framework.
“Regulation where necessary, simplification where possible,” he said, describing the philosophy that will guide the commission’s future actions.
Highlighting the shortage of quality listed companies, he said efforts would be made to bring multinational corporations, state-owned enterprises, and large domestic companies to the stock market. The commission is also considering introducing direct listing opportunities for qualified companies.
On market surveillance, the BSEC chairman said a modern technology-based monitoring system would be developed in coordination with the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited. The system is expected to help detect and curb insider trading, wash trades, circular trading, pump-and-dump schemes, and other manipulative activities more effectively.
He emphasized that the commission’s role is not to control prices but to ensure fair price discovery and equal access to information.
“Our objective is not price control. Prices should be determined by the market, not by manipulation,” he said.
Masud Khan further stated that floor prices are not an effective long-term market mechanism. Therefore, no new floor prices will be imposed in the future, while existing floor prices will be withdrawn gradually, taking market conditions into consideration.
The BSEC chairman concluded by stressing that restoring confidence requires more than policy announcements.
“Trust is not built through speeches, nor through administrative interventions. Trust comes from effective governance, fairness, consistency, transparency, and accountability,” he said.
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