Muhammad Ayub Ali :
The Bangladesh Securities and Exchange Commission (BSEC) is set to introduce a new initiative called a ‘uniform online platform’ aimed at ensuring the safety of investors’ funds in the capital market.
A committee, comprising representatives from Bangladesh Bank, Central Counterparty Bangladesh Limited (CCBL), Central Depository Bangladesh Limited (CDBL), and brokerage houses, is currently working on this initiative. The committee’s research is ongoing, and a report is expected to be submitted shortly.
Under the ‘uniform online platform’ initiative, brokerage houses will be required to provide daily consolidated customer account (CCA) information to the stock exchanges. Both the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have already been instructed to develop this platform and are in the process of doing so.
The new system will enable brokerage houses to compile and submit their CCA account information to the exchanges, where any discrepancies or inconsistencies will be identified and rectified. This is expected to reduce the risk of investors losing their money or shares.
According to Mohammad Rezaul Karim, spokesperson and executive director of BSEC, the initiative aims to reduce the possibility of embezzlement by brokerage houses, thereby improving supervision and monitoring in the capital market.
This will ultimately protect the interests of investors.
“This is a step forward in automation. Gradually, the market is moving towards full automation,” he said.
While the initiative is seen as investor-friendly, Saiful Islam, president of the Dhaka Brokers Association (DBA), highlighted the need for sufficient manpower and time to implement the platform.
He emphasised the importance of full cooperation from stakeholders, including the central bank and the capital market participants. “Without the concerted efforts of all involved, this platform cannot be implemented,” he added.
Earlier, BSEC sent a letter to DSE and CSE on October 31, requesting an update on the progress of the uniform online platform. The initiative was discussed in a meeting held on April 29, 2023, and BSEC directed both exchanges to develop the platform on October 9. Following the exchanges’ request, BSEC extended the deadline for implementation by an additional 20 working days, until November 6.
