SEC needs immediate restructuring

Mohammad Mufazzal

The government should complete the restructuring of the securities regulator on an urgent basis for smooth operation of the stock market, a newly appointed SEC member said.

On the other hand, the experts said both the partial and delayed implementation of actions will be dangerous for the stock market, as the government is yet to complete the restructuring of the Securities and Exchange Commission (SEC).

“We have so many works, which must be completed as early as possible to restore stability to the stock market,” newly appointed SEC member Professor Helal Uddin Nizami told the FE.

“That’s why the government should immediately complete the proposed re-structuring of the SEC,” Nizami added.

Finance Minister AMA Muhith recently said at a press briefing, arranged on April 30 to publish the share market probe body’s report, that the government would restructure SEC.

He said the core team of SEC would be reshuffled by appointing a new chairman and the two existing members would also have to go, as part of the government’s restructuring initiative.

Meanwhile, the Finance Minister left the country to attend the fourth UN Conference on Least Developed Countries Istanbul in Turkey.

In absence of the minister, two SEC members Mohammad Anisuzzaman and Muhammad Yasin Ali submitted their resignation letters on May 8 and May 9, 2011 respectively to comply with the verbal order of the finance ministry.

But the partial restructuring of the SEC is affecting its policy making decisions, as thousands of angry investors are still now continuing demonstration following the sharp declining trend of the market.

The probe committee on the recent stock market scam made 25 recommendations, including restructuring of the SEC in its report for the sake of the stock market.

By adding 11 more recommendations, the Finance Minister declared the implementation of 36 recommendations in phases.

The retail investors demanded Monday completion of the process of restructuring the regulator within 72 hours.

“The government should complete the proposed restructuring of the SEC on an urgent basis, as partial and incomplete measures will be dangerous for the stock market,” stock expert Professor Salahuddin Ahmed told the FE.

Anisuzzaman is not attending the office after the submission of his resignation letter.

The other member Yasin Ali is attending office, as the law says a member will have to continue his job until his resignation letter is accepted by the authorities concerned.

But Mr Ali in a letter has requested the SEC chairman not to engage him in any kind of policy-level tasks as long as he remains present at SEC, after submitting resignation, in order to comply with the relevant law. Ali was not served any file on Wednesday.

By this time, the prime bourse — Dhaka Stock Exchange (DSE) — has not complied with a directive, issued by the SEC, to make the MI Cement a listed issue.

A stakeholder said, on condition of anonymity, that apparently it appears that the DSE is stronger than its regulator.

“Such kind of non-compliance may continue if the government fails to strengthen the SEC, by appointing new members and a chairman,” he said.

Presently, the existing SEC chairman Ziaul Haque Khondker and newly appointed member Helal Uddin Nizami are in the commission.

These two persons will not be able to hold any commission meeting in absence of quorum in the commission.

Meanwhile, Finance Minister AMA Muhith returned home on Wednesday from Istanbul.

The investors and experts expressed their hope that the Finance Minister would be serious in completing the proposed restructuring of the SEC.