The securities regulator Thursday moved to amend Securities and Exchange Ordinance, 1969, to make it more time-befitting in an effort to breathe life intothe stock market, officials said.
An official at Securities and Exchange Commission (SEC) said that the regulator on the day started a meeting, that is expected to continue, with key stakeholders to amend the ordinance.
The move comes after the probe body on the recent stock market scam made recommendations to overhaul the SEC along with the necessity of amending some securities laws.
On the day, the SEC held a meeting with the representatives of both the bourses, state-run Investment Corporation of Bangladesh (ICB), Bangladesh Association of Publicly Listed Companies (BAPLC), Bankers Association of Bangladesh, Bangladesh Insurance Association and Bangladesh Merchant Bankers Association.
SEC spokesman Mohammad Saifur Rahman said that at the meeting the regulator discussed different clauses of Securities and Exchange Ordinance, 1969 with the participants to bring amendment to the ordinance.
"No solid decision was taken at today's (Thursday) meeting as the regulator needs to sit again with the stakeholders," Mr. Rahman told the FE.
A meeting insider said, "At today's meeting the participants discussed some clauses of the Securities and Exchange Ordinance, 1969."
"The regulator will amend the ordinance in the light of line-by-line discussion on it," the meeting insider told the FE.
He said the participants discussed on how to change the term 'company'.
"Some of us proposed to use 'issuer' instead of 'company' so that mutual funds and insurers can also be termed 'issuers'," he said.
Under the present provision of the ordinance, the bourses can suspend theshare trading of a company for 14 days on the ground of unusual trading. The bourses can also extend this suspension period to 14 days more in accordance with regulatory consent.
"The bourses proposed to fix the suspension period at 30 days as the companies sometimes fail to clarify the reasons of unusual trading," he added.
He said the regulator and the stakeholders are likely to amend the whole ordinance, which includes a total of 35 clauses, including its definition.
"That's why at the meeting the participants have decided to sit time to time to go through every line of the ordinance," the meeting insider said.
Earlier, another meeting was held at the secretariat to discuss the ordinance for amendment purpose.
The probe body's report on the recent stock market scam was submitted to the finance minister on April 7 last, with suggestion to the government to overhaul the SEC.
The probe body also suggested to bring some changes to the existing securities laws.
Following the probe body's recommendations, the government declared to pave the way for amending the securities laws.
The newly appointed SEC chairman Dr. M Khairul Hossain has affirmed the necessity of amending securities laws on his day of joining the SEC.
An official at Securities and Exchange Commission (SEC) said that the regulator on the day started a meeting, that is expected to continue, with key stakeholders to amend the ordinance.
The move comes after the probe body on the recent stock market scam made recommendations to overhaul the SEC along with the necessity of amending some securities laws.
On the day, the SEC held a meeting with the representatives of both the bourses, state-run Investment Corporation of Bangladesh (ICB), Bangladesh Association of Publicly Listed Companies (BAPLC), Bankers Association of Bangladesh, Bangladesh Insurance Association and Bangladesh Merchant Bankers Association.
SEC spokesman Mohammad Saifur Rahman said that at the meeting the regulator discussed different clauses of Securities and Exchange Ordinance, 1969 with the participants to bring amendment to the ordinance.
"No solid decision was taken at today's (Thursday) meeting as the regulator needs to sit again with the stakeholders," Mr. Rahman told the FE.
A meeting insider said, "At today's meeting the participants discussed some clauses of the Securities and Exchange Ordinance, 1969."
"The regulator will amend the ordinance in the light of line-by-line discussion on it," the meeting insider told the FE.
He said the participants discussed on how to change the term 'company'.
"Some of us proposed to use 'issuer' instead of 'company' so that mutual funds and insurers can also be termed 'issuers'," he said.
Under the present provision of the ordinance, the bourses can suspend theshare trading of a company for 14 days on the ground of unusual trading. The bourses can also extend this suspension period to 14 days more in accordance with regulatory consent.
"The bourses proposed to fix the suspension period at 30 days as the companies sometimes fail to clarify the reasons of unusual trading," he added.
He said the regulator and the stakeholders are likely to amend the whole ordinance, which includes a total of 35 clauses, including its definition.
"That's why at the meeting the participants have decided to sit time to time to go through every line of the ordinance," the meeting insider said.
Earlier, another meeting was held at the secretariat to discuss the ordinance for amendment purpose.
The probe body's report on the recent stock market scam was submitted to the finance minister on April 7 last, with suggestion to the government to overhaul the SEC.
The probe body also suggested to bring some changes to the existing securities laws.
Following the probe body's recommendations, the government declared to pave the way for amending the securities laws.
The newly appointed SEC chairman Dr. M Khairul Hossain has affirmed the necessity of amending securities laws on his day of joining the SEC.
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