SEC to restore ‘lost image of securities regulator’

FE Report

The newly appointed SEC Chairman Dr. M Khairul Hossain Monday said the commission would try its best to restore the lost image of securities regulator.

His commitment comes a day after he took over the charge of chairman of Securities and Exchange Commission (SEC).

"We are very much committed to restore the regulatory image for the sake of stock market and investors," Hossain told the FE.

Mr. Hossain said the regulator would not backtrack to take action against any alleged official, as a part of its move in regaining the prestige of securities regulator.

"One must be punished if he is found guilty," he said.

Recently, the probe body on recent stock market scam blamed the SEC largely for market crash and suggested the government to restructure the securities regulator.



Echoing the new chairman’s view, member of the SEC Professor Helal Uddin Nizami said the SEC would bring its lost image back through commitment, transparency and integrity in regulatory affairs.

"The government is very much positive to help the regulator so that it can restore its image," Nizami told the FE.

He said a person needs courage and honesty to establish his image.

Nizami also said earlier those who were in the commission misused their power to destroy the image of the SEC.

"Some directives were issued from the department of surveillance that created misunderstanding between the regulator and investors. Such kind of directives also created lack of co-ordination among the stakeholders," Nizami said.

He said from now on the regulator would not issue such kind of directives, which may create unrest in the market.

Meanwhile, the board of directors of Dhaka Stock Exchange (DSE) also stressed on the restoration of regulatory image while they called on the newly appointed SEC chairman Monday to welcome him.

After the meeting, DSE President Shakil Rizvi told the FE that the regulatory image would have to be restored through their activities.

"Every one of securities regulator cannot be blamed for losing its image," Rizvi said.

He said the regulator might be blamed for two or three officials. That's why the SEC needs to restore its image through the maintenance of proper transparency.

Rizvi said the directors of DSE board also proposed to bring changes in some securities rules in a move to make the market vibrant.

"We have also proposed to restore the law of appointing stock market consultant, as the investors sometimes become misguided when they depend on the advices of imprudent stock advisor," Rizvi said.

Another meeting insider said Monday’s meeting, with SEC has taken into account seriously the issue of restoring the confidence of investors.

"The SEC said it would evaluate the opinions of different stakeholders in coming days to make the stock market vibrant," he said.

He said the regulator would bring changes in some securities rules so that the stock market becomes more time befitting.

Asked, the SEC chairman said some rules were introduced when the stock market was operated manually.

"These rules will be reformed in line with the discussions," the chairman said.

He also said some other rules will have to be changed for the demutualisation of stock exchanges.

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