BSEC has absolute power to take decision on capital market
Gulam Rabbani :
In the full text of a verdict the High Court observed that the Bangladesh Securities and Exchange Commission (BSEC) has the absolute authority with a non obstante clause to take any decision whatsoever in respect of the capital market with a view to safeguarding the interest of the general investors and to save the same from the risk of losing their hard earned savings in the capital market under SME Platform.
Even the Commission has the authority to fix up minimum investment limit of Tk 3 million for an investor to be qualified for trading in the SME platform.
It also opined that giving open “Floor Price” for SME Platform is the absolute discretion of the Commission.
The observation comes into the full text of a judgment delivered by the High Court bench of Justice Farah Mahbub and Justice Muhammad Mahbub Ul Islam.
The bench delivered its short judgment on May 31, 2023, while full text of it has been released on the Supreme Court website recently.
According to the verdict, Md Raju Hossen, an investor of the Small Capital Platform or SME Platform, filed a writ petition challenging the legality of a circular issued by the BSEC on September 21 in 2022 asking the eligible investors of the SME Platform to maintain a minimum portfolio investment of Tk 3 million.
Following the petition, the HC bench issued a rule upon the respondents to explain as to why the circular issued by the BSEC asking the eligible investors of the SME Platform to maintain a minimum portfolio investment of Tk 3 million and thereby imposing restriction upon free access to any intended investor having any amount of money in the said Platform should not be declared illegal.
At the time, the HC bench stayed the operation of the circular of the BSEC for a prescribed period.
After final hearing, the High Court bench discharged the rule. It also vacated the stay order on the operation of the circular.
The HC said imposition of restriction by the Commission on the SME Platform in exercise of power as provided under Section 20A of the Securities and Exchange Commission Ordinance, 1969 cannot be said to have offended Articles 27 and 29 of the Constitution.
It further observed that in view of the assertions of the Commission and also, considering the context of the impugned notification being issued for the greater interest of the general qualified investors, question of violation of Articles 40 and 42 of the Constitution does not arise at all.
Lawyers Md Nuro Nabi Bulbul and Mostafa Kamal appeared in the court hearing on behalf of the writ petitioner, while Barrister A M Masum represented the BSEC.
