Bid to bring SEC, RJSCF under one umbrella

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FE Report
A move is underway to bring the Securities and Exchange Commission (SEC) and the Registrar of Joint Stock Companies and Firms (RJSCF) under one umbrella to make the company registration process easier and hassle-free.
"We have already submitted a proposal to the government for making a single regulator that will look after the registration and regulatory activities of companies," Mansur Alam, a member of the SEC, said Monday.
As in many other countries including Pakistan, a single regulatory body serves the purposes of both, he said while speaking at a training programme on "Securities Market Reporting' jointly organised by the Dhaka Stock Exchange (DSE) and Economic Reporters Forum (ERF) in the city.
He also mentioned that the move had been initiated following frequent appeals and recommendations received from a number of companies concerned.
Currently, the registered companies are required to get registered separately with the SEC and the RJSCF.
Besides, the companies concerned also require reporting their financial and operational matter to both the bodies, he added.
However, the Chief Executive Officer (CEO) of the Dhaka Stock Exchange Salahuddin Ahmed Khan observed that the move to bring the SEC and RJSCF under one roof would yield little result unless the existing manpower of the SEC was increased and structural change ensured.
There are only 90 officials and employees in the SEC, he said, adding that the number is quiet inadequate to serve the desired purpose, he mentioned.
Presently, about 1500 companies await registration of the SEC, he mentioned.
The SEC, which was established in June 8, 1993 under the Securities and Exchange Commission Act, 1993, regulate the business of the Stock Exchanges or any other securities market in the country, according to sources.
It also regulates sub-brokers, share transfer agents, merchant bankers and managers of issues, trustee of trust deeds, registrar of an issue, underwriters, portfolio managers, investment advisers and other intermediaries in the securities market.
Besides, the Commission is also responsible for registering, monitoring and regulating of collective investment schemes including all forms of mutual funds, all authorised self regulatory organisations in the securities market.
Apart from that, other functions of the SEC are to monitor fraudulent and unfair trade practices, insider trading in securities and regulate the substantial acquisition of shares and take-over of companies.
Meanwhile, more than 40 ERF members are taking part in the two-day training programme.