Govt to empower BSEC to dissolve board on its own28 March 2023
Business Report :
The Ministry of Finance recently drafted rules to empower the Bangladesh Securities and Exchange Commission (BSEC) for allowing the regulator to dissolve any board of listed companies without plausible hearing if they fail to submit financial reports or non-comply with corporate governance.
The Financial Institutions Division published the draft of the Bangladesh Securities and Exchange Commission Act, 2022 on March 5 and sought feedback from stakeholders.
If the listed issuers fail to submit the annual reports or any other reports or break rules, the commission can restructure the board, the draft act said.
In the case of board restructuring, the commission would consult with the primary regulator of listed companies.
The commission can't restructure the board without holding a logical hearing.
To strengthen and modernize the legal structure of the BSEC, the government has published the draft act, updating the Bangladesh Securities and Exchange Commission Act, 1993 and the Securities and Exchange Ordinance, 1969.
The draft act also proposed some new issues that were not included in the previous act and the ordinance.
To reach the goals under the proposed act, the government would form one or more special tribunals. If anyone breaks rules and regulations, trials would be carried out at the tribunal.
The BSEC will be able to form an advisory committee composed of people who have in- depth knowledge of securities and laws.
If anyone manipulates stocks and the commission files cases with courts, they may face imprisonment for up to 10 years, a fine of at least Tk10 lakh, or both.
Funds earned through manipulation or any other illegal ways will be forfeited and compensated among the victims.
The compensation should at least double the loss, it added.
The proposed act has empowered the commission to carry out intelligence activities to get advance information on stock manipulation.