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Govt move to enact single act

BSEC can form own permanent prosecution unit


| Updated: July 23, 2020 09:51:54


Govt move to enact single act

The government has moved to bring the activities of the securities regulator and operations of the capital market under a single act to be enacted by the parliament on completion of relevant processes.

As part of the move, the Financial Institutions Division (FID) of the ministry of finance (MoF) has drafted an act accommodating the Securities and Exchange Ordinance, 1969 and the Bangladesh Securities and Exchange Commission Act, 1993.

The FID has sought public opinion on the accommodated draft act titled 'Bangladesh Securities and Exchange Commission Act, 2020'.

"The main objective of accommodating the existing ordinance and act is to bring the activities of the securities regulator and market intermediaries under a single act," said a senior official of the Bangladesh Securities and Exchange Commission (BSEC).

The BSEC official said the draft of the accommodated act has included some new provisions regarding the operations of newly-formed clearing corporation and the formation of prosecution unit for the tribunal on capital market.

As per the proposed act, the securities regulator will be able to form its own permanent prosecution unit appointing required number of prosecutors to deal the cases filed with the special tribunal of the capital market.

The appointment and job conditions of the prosecutors will be defined by rules, said the draft act.

"The prosecutors appointed as per this act will be considered as public prosecutor (PP)."

The proposed act has also empowered the securities regulator to contain rumours spread through social media.

The Securities and Exchange Ordinance, 1969came into effect on June through a gazette published by erstwhile Pakistan government on 28, 1969 to protect investors and operate the securities market and for matters ancillary thereto.

After liberation, the government of independent Bangladesh adopted the ordinance through vetting.

On the other hand, the Bangladesh Securities and Exchange Commission Act, 1993 came into effect on May 3, 1993. The act empowered the establishment of the securities regulator and the operations of the market intermediaries.

Besides, the rules of mutual funds, prohibition of insider trading, merchant banker and portfolio management, market maker and acquisition of substantial amount of shares, among others came under the Bangladesh Securities and Exchange Commission Act, 1993.

On the other hand, the rules regarding public issue, rights issue, private placement of debt securities, research analysis, margin loans, issue of capital, over-the-counter, among others, were formulated under the Securities and Exchange Ordinance, 1969.

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