About
BSEC
SEC
The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June, 1993 as the
regulator of the country's capital market through enactment of the Securities and Exchange Commission
Act 1993.
Through an amendment of the Securities and Exchange Commission Act, 1993, on December 10, 2012,
its name has been changed as Bangladesh Securities and Exchange Commission from previous Securities
and Exchange Commission. The Commission is a statutory body and attached to the Ministry of Finance.
Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC) is the supreme authority of capital market in Bangladesh. SEC
was established on 8 June 1993. It is formed and regulated by the Securities and Exchange Commission
Act. 1993. SEC is under finance ministry of the people's Republic of Bangladesh. SEC is a statutory
organization. The main objective of SEC is to protect the investors. It regulates the capital market by
formulating rules.
Objectives of SEC
SEC is the authority to regulate and control the capital market in Bangladesh. It's a statutory
organization. They are the essential objectives of SEC as follows:
To monitor, investigate and control the capital market,
• To ensure development and evolution of share market,
• To regulate the share or debenture issue.
• To formulate policies for the capital market.
• To establish a new stock exchange.
To protect frauds and other misdeeds.
Vision, Mission and strategy
Its VISION is the development of modern and efficient corporate sector and capital market, based on
sound regulatory principles.
MISSION is to develop a fair, efficient and transparent regulatory framework, based on international
legal standards and best practices
STRATEGY is to develop an efficient and dynamic regulatory body, ensures proper risk management
procedures in the capital market, and protects investors through responsive policy measures and
effective enforcement practices.
Functions
Regulating the business of the Stock Exchanges or any other securities market.
Registering and regulating the business of stock-brokers, sub-brokers, share transfer agents, merchant
bankers and managers of issues, trustee of trust deeds, registrar of an issue, underwriters, portfolio
managers, investment advisers and other intermediaries in the securities market.
Prohibiting insider trading in securities.
Regulating the substantial acquisition of shares and take-over of companies.
Conducting research and publishing information.
SEC Division
1. Law Division: Growth of enterprise, protection of investors and creditors, promotion of investment
and development of economy Law division divided into three departments: Registration Enforcement
Management Department Department Team
2. Securities Market Division Protection of investors, regulation of markets dealings in securities It has
two department: Market Supervision and Capital Issues Department. Policy, Regulation and
Development Department.
3.Specialized Companies Division: To provide a regulatory environment for the development and
promotion of a Non-Bank Financial (NBF) sector.
4. Insurance Division. The main objectives includes: Regulates
and monitors the Insurance Sector through Insurance Ordinance, 2000 and the Companies Ordinance,
1984
Management of SEC
1. Risk management Market risk defines the overall risk involved in the capital market investments. The
stock market rises and falls depending on a number of issues.
⚫ 2. Asset management. Asset Management is the business of providing financial products or services to
a customer for a fee or commission.
3. Portfolio management. Prudent investing is a rational process. It involves deciding how much risk to
take, then choosing asset classes to match an investor's preferred risk-return tradeoff.
Problems and Limitations of SEC
• Price Manipulation It has been observed that the share values of some profitable companies have
been increased fictitiously some times that hampers the smooth operation of DSE.
Delays of settlement Financing procedures and delivery of securities sometimes take an unusual long
time for which the money is blocked for nothing.
Irregular payment dividends Some companies do not hold Annual General Meeting and eventually
declare dividends that do not reflect the real or actual financial positions of the company and ultimately
shareholders become confused.
