The Bangladesh Securities and Substitute Commission (BSEC) has sought the aid of the World Financial institution to toughen the surveillance system of the capital market to international standards.
“We’re working to toughen this methodology as like a flash as possible, and for this, we now hold requested the aid of the World Financial institution, at the side of technical toughen,” BSEC Commissioner Farzana Lalarukh stated after a gathering with a World Financial institution delegation the day earlier than this day.
“Presently, we’re running with a ragged surveillance system that used to be installed in 2012 and has now not been as a lot as this level since,” she successfully-known at some level of a press briefing on the commission headquarters.
At the clicking convention, BSEC Chairman Khondoker Rashed Maqsood faced a barrage of tricky questions from reporters, and, at one level, left the venue with many questions unanswered.
“We talked about declare points this day, specializing in which areas we are in a position to receive technical the aid of the World Financial institution. Our most foremost focus used to be on bettering our surveillance system, particularly how we are in a position to bolster our surveillance crew. We additionally talked about governance issues,” stated Maqsood stated after the assembly led by Niraj Verma, conform to manager for long-time duration finance of the World Financial institution Community.
BSEC Commissioners Md Mohsin Chowdhury, Lalarukh, and Md Ali Akbar additionally attended the assembly.
How the market surveillance system works
Market surveillance entails combating and investigating abusive, manipulative, or unlawful trading practices in the securities markets. Its predominant aim is to verify that markets operate in an dazzling and transparent manner, allowing investors and sellers to participate with self assurance in the fairness and accuracy of transactions. With out efficient market surveillance, markets might perchance perchance perchance develop into chaotic, discouraging funding and hindering economic increase.
In 2012, basically based on the suggestions of Khandaker Ibrahim Khaled’s investigation characterize on the capital market, the BSEC made up our minds to buy its surveillance application. The applying, named “Quick Explore Market,” used to be got from a Swedish firm for $350,000, funded by the Asian Vogue Financial institution.
Though the appliance used to be developed by a Swedish firm, the regional vendor used to be the Indian firm “Chella Utility.” The contract wants to be renewed every three years, with an annual renewal charge of $50,000 for licensing and maintenance, totalling $150,000 over three years.
This application permits for monitoring every actual-time and ancient records. On the opposite hand, after procuring the system from Chella Utility, there has been no additional contact with them.
The ragged model of the appliance is still in exclaim as of this day, 31 March. The contemporary model of the appliance is scheduled to be implemented on 1 April, nonetheless the vendor is delaying the provision of the appliance to the BSEC.
Consultants relate the surveillance application wants to be as a lot as this level to bolster integrity and transparency in the market. They additionally instructed that the department in charge for this wants to be expanded to verify efficient functioning.
The contrivance in which it with out a doubt works in bourses
The predominant targets of the surveillance characteristic are to promote market integrity by monitoring tag and quantity movements (volatility). Early detection of doable market abuses reduces the flexibility of market participants to steer the costs of securities with out meaningful records.
BSEC chairman faced questions from reporters
After a gathering with the World Financial institution delegation, the BSEC chairman faced a range of questions referring to media discover entry to on the commission. On the opposite hand, he did now not provide clear answers to declare enquiries.
When requested in regards to the Financial Institutions Division’s decision to grant three months for the resignation of ragged BSEC Commissioner ATM Tariquzzaman, and whether or now not he might perchance perchance perchance be left with out a voice in the arriving days, the BSEC chairman acknowledged that some initiatives might perchance perchance impartial still be coordinated with the ministry and that there used to be nothing to touch upon publicly referring to this topic.
He additionally shunned answering questions about whether or now not the BSEC can operate independently. Citing one other assembly, he left like a flash after the briefing.
