The Bangladesh Securities and Exchange Commission (BSEC), the regulatory body overseeing the country’s stock market, finds itself engulfed in an ongoing crisis marked by distrust and disarray. Despite expectations of a return to stability following the popular uprising that saw the fall of the Sheikh Hasina government, the situation within BSEC remains far from normal. As stock market prices continue to fall, coupled with a crisis of confidence, the regulatory body has struggled to regain control of the situation.
BSEC in Crisis: Internal Conflict and Lack of Leadership: The past few weeks have seen escalating tensions within the BSEC, particularly between its Chairman Rashed Maqsood, the commissioners, and their subordinate officials. A deep-rooted conflict has persisted for over two weeks, culminating in a shocking incident on March 5, when BSEC officials blocked the chairman and commissioners for four hours, creating an unprecedented level of chaos within the organization. This situation has left the commission in a state of disarray, with officials unable to function in a normal capacity. The BSEC Chairman has expressed concerns about the ongoing lack of control, warning that officials may be attempting to erase files and manipulate records in order to cover up previous misdeeds, including the potential for CCTV footage tampering.
The Fallout: Accountability and Escalating Tensions: Amidst the chaos, questions about accountability have surfaced. A number of BSEC officials, including 16 individuals, are believed to be involved in the March 5 blockade, and the commission has sent a formal letter to the Finance Ministry, holding these officials fully responsible. Concerns are rising that more officials could face punitive actions, following the forced retirement of Executive Director Saifur Rahman.
The tension continues to rise as anger within the commission has grown, especially after the letter to the Finance Ministry requesting the reassignment of several officials. These actions have led to a lack of trust between BSEC’s leadership and its officials. While many officials have expressed a desire to return to normal work, they do not perceive sincerity from the commission’s leadership, and some are now calling for government intervention to resolve the situation. However, no visible steps have been taken by the ministry to address the crisis so far.
Government Response: Committee Formed to Strengthen BSEC: Recognizing the growing crisis at the BSEC, the Financial Institutions Division of the Ministry of Finance has taken some action. On March 11, a four-member committee was formed, headed by Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Advisor of the interim government, with the goal of strengthening the BSEC and improving the overall functioning of the country’s capital market.
Dr. M Sadiqul Islam, a committee member and professor at the finance department of Dhaka University, highlighted that while the committee is working on long-term issues for the capital market, the current situation at BSEC is abnormal and needs to be addressed immediately. “The situation needs to end quickly, as it is not conducive to the proper functioning of the stock market or the BSEC,” Dr. Islam said.
Former BSEC Chairman Calls for Immediate Government Intervention: Former BSEC Chairman Faruk Ahmed Siddiqui has also weighed in on the issue, stating that the regulatory body cannot function effectively under the current circumstances. He emphasized that the government must step in to restore order at the commission, with all parties working together to normalize the situation. Siddiqui noted, however, that the commission has the primary responsibility to restore order as it is the guardian of the capital market. Siddiqui also raised concerns about bringing government officials into BSEC, arguing that it would undermine the independent nature of the commission. “The technical work at BSEC cannot be done by deputized government officials,” Siddiqui said, adding that it would not be an appropriate solution to the crisis.
Ongoing Disruptions: Key Positions Left Vacant: The internal conflict at BSEC has significantly disrupted its operations, with routine work being disrupted across various departments. According to reports from BSEC officials, distrust continues to simmer between the chairman, commissioners, and subordinate staff, with many wondering what actions might be taken next in response to the March 5 blockade incident. In addition, the recent resignation of Executive Director Mahbubul Alam, who headed the Market and Intermediaries Department, has further exacerbated the crisis. Since Alam’s resignation, key departmental functions have been put on hold, and no decision has been made regarding the acceptance of his resignation. As a result, important files are left pending, waiting for the next steps, and the absence of a clear decision-maker has paralyzed critical operations within the department. A meeting has been requested to determine whether files should be sent directly to the concerned commissioner for decisions.
A Fractured BSEC: Lack of Trust and Dysfunction: The situation within BSEC has become increasingly dysfunctional, with officials expressing fear and uncertainty over potential punitive measures following the March 5 blockade. As tensions between leadership and staff continue to escalate, the core mission of BSEC-to maintain market integrity, protect investors, and ensure transparency-is at risk of being undermined. The lack of trust between the BSEC chairman and his commissioners, along with the fear of retaliation among subordinate officials, has led to an environment where the commission is unable to function effectively. The recent calls for government intervention reflect a broader concern that the regulatory body’s credibility and ability to restore stability to the stock market are now in jeopardy. Given the current turmoil at BSEC, the stock market in Bangladesh faces an uncertain future. Investors are already disillusioned by the prolonged period of falling stock prices, and the lack of leadership at the regulatory body has deepened this sense of despair. The longer the internal conflict persists, the more the stock market’s stability and investor confidence will be at risk.
The government and relevant authorities must act quickly to resolve the crisis. Reforming BSEC, restoring trust within the commission, and ensuring that it can function effectively will be critical in stabilizing the stock market and protecting investors’ interests. Without swift intervention, the distrust that currently plagues the commission could continue to undermine Bangladesh’s capital market, further dampening the nation’s economic growth prospects. As the situation unfolds, all eyes will be on both the government and the BSEC to take decisive action to restore normalcy and ensure that the regulatory body can once again perform its vital role in maintaining market integrity and growth.
BSEC Crisis Deepens Amidst Internal Conflict: Strikes, Blame, and Growing Distrust:- The ongoing crisis at the Bangladesh Securities and Exchange Commission (BSEC) continues to unravel, as internal strife and a series of alarming incidents have deepened the turmoil within the regulatory body. The latest developments include a brief strike by BSEC officials following a chaotic incident on March 5, followed by unresolved tensions between the commission’s leadership and its staff.
The Strike and Return to Work: On March 6, following the unfortunate events of March 5, BSEC officials went on strike, refusing to carry out their regular duties in protest of the treatment they received from the commission’s leadership. However, the strike was short-lived, as officials returned to work the following Sunday. Despite their return, the underlying issues remain unresolved, and the work environment has become more toxic. Several senior BSEC officials, speaking on condition of anonymity, have expressed their dissatisfaction with the commission’s leadership. They claim that the BSEC chairman and commissioners are showing little sincerity in addressing the issues within the organization. According to these officials, the administration department is unaware of any plans to bring officials from the ministry on deputation, which has sparked confusion regarding the commission’s intentions. A critical concern raised by officials is how the commission intends to function effectively if ministry officials are brought in to fill high-ranking positions. Given the “technical” nature of the work required at BSEC, these officials question how such a move would allow the regulatory body to function properly.
Rising Tensions and Accountability: The conflict took a serious turn on March 9, when the chairman and commissioners held a two-hour meeting with market participants and members of the special investigation committee formed to look into irregularities in the stock market. While the meeting was meant to address concerns, it failed to alleviate the growing tensions between BSEC leadership and its staff. On March 16, the leadership of the commission took another contentious step by blaming officials for the ongoing crisis during a meeting with journalists. However, this meeting did little to calm the fears of BSEC employees. In a meeting on March 10, Chairman Rashed Maqsood called a meeting with staff at all levels but spoke for just five minutes, only addressing the presence of a police guard in the building. The brief and impersonal nature of this address further deteriorated the relationship between BSEC leadership and its officials. As a result, BSEC employees are increasingly panicked, with some fearing that the commission’s leadership is escalating the crisis rather than seeking a resolution. The March 5 blockade incident has left officials worried about the potential for further punitive measures, with some hearing rumors that the number of accused individuals in the case may be increased from 16 to 23.
The Investigation into the Incident: Inquiries into the March 5 blockade incident are ongoing, with police and investigation officers probing the circumstances surrounding the event. SI Shamiul, the investigation officer handling the case, confirmed that there had been a phone conversation with the BSEC chairman on March 14 to ensure that the investigation is fair and transparent. Shamiul also revealed that the investigation has been complicated by the disappearance of CCTV footage from the BSEC building. On the day of the incident, all CCTV cameras were turned off, and no recorded footage of the event or the hours preceding or following it was found. As a result, the investigation has faced significant challenges in identifying any additional individuals involved in the incident.
BSEC’s Official Statement: In a press briefing held on Sunday, Chairman Rashed Maqsood and three other commissioners, Mohsin Chowdhury, Ali Akbar, and Farzana Lalarukh, addressed the media, offering their perspective on the March 5 blockade and the ongoing crisis within the commission. The BSEC leadership described the incident as “pre-planned”, with 150 officials allegedly creating a “suffocating” atmosphere by blocking the commission’s meeting room for four hours. The BSEC chairman further claimed that the officials had turned off the electricity and air conditioning to add to the distress, and even shut down the office’s main gate to expel stock market participants who were at the commission for their work-related activities. Chairman Maqsood pointed out that many officials had become frustrated by promotion delays and had taken extreme measures in protest. He suggested that these officials may have been motivated by anger over the lack of career advancement, even though the commission was not responsible for the promotion process.
Corruption Allegations: Commissioner Mohsin Chowdhury also commented on the ongoing concerns about corruption within the commission. He revealed that some BSEC officials had been involved in changing the notes of commission decisions, which had led to questions being raised. Some of these officials have since been issued show-cause notices. Additionally, concerns were raised about officials purchasing land in remote areas using home construction loans, with efforts underway to bring these actions within the regulatory framework. Commissioner Ali Akbar reinforced the idea that actions are being taken based on the findings of the special investigation committee that was set up to probe stock market irregularities. He emphasized that no one is above the law and that officials who have been found guilty of misconduct will be held accountable.
The Impact on Stock Market Operations: While the leadership of BSEC has acknowledged the internal turmoil, there has been little recognition of the negative impact that the ongoing crisis is having on the functioning of the stock market. The commission’s inability to resolve its internal conflicts is affecting the market’s stability and investor confidence. As one official stated, “The work of the commission is being stalled, and no one seems to care about the consequences for the market.”
Despite the ongoing issues within BSEC, there has been no official comment from the commission’s leadership regarding the long-term negative impact on the stock market. The situation continues to evolve, and many are concerned about whether BSEC will be able to regain its credibility and functionality.
The Path to Recovery: The crisis at BSEC remains unresolved, and the internal divisions within the regulatory body show no signs of abating. With stock market stability hanging in the balance, the commission must take immediate steps to restore order, rebuild trust, and focus on its core mission of regulating the market. The government, too, will need to play a crucial role in addressing this issue to ensure that the market can recover from the current turmoil and function efficiently. The situation remains fluid, and the coming weeks will be critical in determining whether BSEC can overcome its internal conflicts and fulfill its responsibilities as the guardian of the capital market.
