Bangladesh Securities and Exchange Commission (BSEC) has become an elite class regulator, which has prepared itself as a regulatory agency for international cooperation on securities markets worldwide.
To join the elite regulators group, the BSEC will now sign a multilateral memorandum of understanding (MMoU) this week with International Organisation of Securities Commissions (IOSCO), the association of national securities regulatory agencies.
After signing the MMoU, the BSEC will also be rated as “A” category regulator, from existing “B” category, officials said today.
Established in 2002, the MMoU sets an international benchmark for cross-border co-operation. It provides securities regulators with tools for combating the cross-border fraud and misconduct that can weaken global markets and undermine investor confidence.
“The IOSCO on Friday night officially informed us that we have been permitted to be the signatory in the MMoU,” BSEC Chairman M Khairul Hossain said at a press briefing.
With this recognition, he said, the BSEC will be able to take part in the IOSCO’s policymaking process and election. “We can also seek and offer assistance from and to other member agencies on regulatory enforcement actions,” he said.
It took four years to achieve the highest status from the IOSCO. “We applied for it in 2009, and during the period we have brought many changes in our rules and regulations as per the requirements of the IOSCO’s verification team,” Hossain said, adding that they fulfilled all the requirements without any foreign consultation.
Presently, there are 98 “A” category securities market regulators including neighbouring India, Pakistan and Sri Lanka.