Foreign advisers to lead stock market overhaul

Staff Reporter :

In a bid to implement meaningful reforms in Bangladesh’s stock market, the interim government has decided to bring in a team of foreign experts to develop actionable recommendations within three months – insulated from domestic vested interests.

The decision was made during a high-level meeting chaired by Chief Adviser Professor Muhammad Yunus on Sunday.

Press Secretary Shafiqul Alam briefed the media following the session, which was also attended by Finance Adviser Dr Salehuddin Ahmed, Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury, BSEC Chairman Khondoker Rashed Maqsood, and Financial Institutions Division Secretary Nazma Mobarek.

At the outset, BSEC Chairman Maqsood presented an overview of recent market developments and reform measures undertaken over the past nine months. Following the presentation, the Chief Adviser issued five key directives aimed at revitalising and modernising the capital market. “Numerous vested interests are deeply embedded within the stock market,” said Press Secretary Shafiqul Alam.

“Even when reforms are initiated, they often face obstruction from these groups. To circumvent such resistance, a group of foreign experts – free from local affiliations – will be engaged to propose strategic modernisation measures and stronger investor protection mechanisms. Their report is expected within three months.”

This latest move follows several earlier reform initiatives. On 7 October last year, the interim administration’s newly appointed securities commission formed a task force to outline essential reforms.

The task force includes Professor Mohammed Helal Uddin (Economics, Dhaka University), KAM Majedur Rahman (former MD, Dhaka Stock Exchange), AF Nesaruddin (former ICAB President), Professor Md Mostofa Akbar (BUET), and Associate Professor Al-Amin (Accounting & Information Systems, Dhaka University).

In January, the government formed a 10-member Capital Market Reforms Focus Group tasked with enhancing overall market development, improving investor confidence, and introducing governance standards aligned with international best practices.

Subsequently, on 18 March, a four-member high-level committee was constituted to strengthen the Bangladesh Securities and Exchange Commission (BSEC) and support comprehensive capital market reform.

The committee is chaired by Dr Anisuzzaman Chowdhury and includes Professor M Sadiqul Islam (Finance, DU), the Additional Secretary of the Financial Institutions Division, and BSEC Commissioner Farzana Lalarukh, who serves as the member secretary.

Despite these reform efforts, concerns have persisted. Several market intermediaries have alleged that certain individuals involved in both the task force and the focus group may have conflicting interests.

They have questioned the credibility of engaging such figures in key regulatory reform processes, stressing the importance of unbiased oversight.

The government’s decision to bring in foreign advisors is seen as a response to these concerns and a step towards restoring credibility and transparency in the capital market.