BSEC to permanently halt trading of closed companies: Chairman

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The Bangladesh Securities and Exchange Commission (BSEC) will take steps to permanently halt the trading of shares belonging to companies whose production or business operations have been shut down for a long time, BSEC Chairman Masud Khan announced today (Thursday).

"In no mature stock market around the world do shares of closed companies trade abnormally like they do in our country. Therefore, necessary measures will be taken to stop the trading of such companies' shares in the interest of investors," Masud Khan said.

The BSEC chief made these remarks while speaking as the chief guest at the "CMJF Talk," an event organized by the Capital Market Journalists' Forum (CMJF) at its office in the capital's Bijoynagar on Thursday. CMJF President Monir Hossain and General Secretary Ahsan Habib Russell, among others, were present at the event.

Highlighting regulatory updates, the BSEC Chairman noted that the Dhaka Stock Exchange (DSE) serves as the primary regulator for market monitoring. 

However, previously, even if there was an abnormal fluctuation in share prices, the DSE had to wait for BSEC approval before taking any action, allowing irregularities to continue in the interim.

To change this dynamic, the DSE has now been granted the authority to take immediate, real-time action against market anomalies. Furthermore, the power to determine and adjust circuit breakers has also been handed over to the stock exchanges. "Such regulations are critically important for the market's greater interest," the Chairman added.

Masud Khan was appointed as the new chairman of the capital market regulator on June 4. He has stated his objective is to modernise the capital market, vowing to reduce bureaucratic hurdles and swiftly address market manipulation.

Reflecting on his appointment, Masud Khan admitted his initial hesitation to take up the mantle at the regulatory body. This is an institution where almost everyone who has joined has faced criticism in one way or another, he acknowledged.

“That is why I was initially reluctant to take up the responsibility. However, when I saw the government’s sincerity regarding stock market reforms and was assured of full independence, I decided to accept the role after consulting my family," he said.

Drawing from his extensive experience in multinational corporations, Khan emphasized a plan-driven management approach. "We spend 80 percent of our time planning and 20 percent on implementation. Before joining BSEC, I spent three months studying and planning for the country's stock market," he disclosed.

Identifying key growth areas, the BSEC Chairman stressed that the mutual fund sector will be prioritized to deepen the market. He noted that market depth cannot increase unless the mutual fund segment expands.

Acknowledging that the majority of general investors lack the technical capacity to analyze and select fundamentally strong companies, Masud Khan announced that BSEC is taking steps to introduce a "Financial Advisor" certification program in Bangladesh, in alignment with international best practices. - UNB