Securities and Exchange Commission of Bangladesh Essay

13457 Words Sep 4th, 2014 54 Pages
Securities and Exchange Commission Bangladesh
The Securities and Exchange Commission (SEC) was established on June 8, 1993 under the Securities and Exchange Commission Act 1993 (Act 15 of 1993) as a capital market regulator with a view to ensuring proper issuance of securities, protection of the interest of investors in securities, development of the capital and securities markets, and regulation of the capital and securities markets in Bangladesh.
The Commission consists of a chairman and four full time members who are employed by the government for a period of three years renewable for another similar term. The services of the chairman and members of the Commission are also determined by the government. The
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Dividend income was made tax-free in the hands of the recipient. The Government and the Bangladesh Bank took steps to reduce interest rates on the saving instruments and bank deposits.
The macroeconomic measures were complemented by a number of initiatives implemented by the Securities and Exchange Commission (SEC). These were primarily aimed at ensuring smooth and orderly functioning of the capital market. A brief outlines of these initiatives is presented below:
SEC intensified dialogue with various market actors – issuers, members of the stock exchange, merchant bankers, auditors etc. A consultative Committee was set up consisting of SEC officials and the Chief Executive Officers of DSE and CSE to discuss market-related developments and propose appropriate corrective actions.
Monitoring role of SEC was strengthened to ensure that the market actors fulfill their duties and obligations. A system of regular inspection of brokerage houses was put in place. The submission of half-yearly and annual accounts and holding of annual general meetings were closely monitored. Surveillance over the prices and trading volumes of individual scrip was strengthened. These led to a number of enforcement actions, including suspension of trading in shares

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