Govt floats team to curb stock offences
The finance ministry has formed a joint inspection team to check the irregularities in the stockmarket.
The inspection team has been formed in line with a recommendation of a government probe committee on the January-February price debacle in the market.
The Bank and Financial Institutions Division's sub-division on the capital market set the terms of reference of the inspection team through a circular recently.
According to the circular, the four-member panel will keep the market under constant watch and find out if any institution or individual of any intermediary is manipulating or influencing the market.
The inspection panel will be led by an executive director of the Securities and Exchange Commission who will be appointed by the SEC chairman.
Other members of the committee will be a general manager of the Bangladesh Bank nominated by its governor and the chief executive officers of the Dhaka and Chittagong stock exchanges.
To carry out its works, the team will collect information from stockmarket related institutions on a weekly, monthly, quarterly and yearly basis and submit reports to the commission, the circular said.
It can collect information on share trading and other necessary issues from stock exchanges, Central Depository of Bangladesh Limited, commercial banks and non-bank financial institutions, merchant banks, stockbrokers, stock dealers, asset management companies and listed firms.
In case of emergency, the team, upon receiving prior permission from the regulator, can conduct investigation in coordination with the stock exchanges and the central bank.
The committee will sit once a month to discuss their work plan, development and to scrutinise other related issues.
The inspection team will set its work plan on a random basis after examining the surveillance reports of the SEC and the bourses, newspaper clippings and video footages.
The circular also said the inspection team may need additional staffs to carry out its works. The team members can appoint additional staffs from their own institutions with permission of their top executives.
Comments