The securities regulator has urged the Financial Institutions Division (FID) to facilitate realisation of a grant, amounting to about US$ 7.0 million, from the World Bank (WB) for digitalisation of the country's capital market.
The Bangladesh Securities and Exchange Commission (BSEC) made the plea by sending a letter to the FID on Monday.
In its letter, the BSEC has sought the FID's collaboration for engaging the Economic Relations Division (ERD) in realising the grant from the WB.
The BSEC officials said they have made the proposal for realising the estimated grant from the WB following successful discussions with the donor.
Prof. Shibli Rubayat Ul Islam, the securities regulator chairman, said one of the WB's longstanding dreams was to be a part of the capital market's development.
"The WB has communicated with us, as we have taken the first initiative of market digitalisation. So, we have made the approach to get the grant following previous discussions with the WB officials."
The BSEC chairman said the regulator is optimistic about implementation of the proposed market digitalisation initiative within one year of receiving the fund.
"Our consultant has already done many works in advance. We hope the planned digitalisation process will be completed by 2022, if we get the grant within this year," he added.
According to the BSEC's letter, sent to the FID, the project may initially have three components. These are: formation of data standardisation and interoperability board to set up technical standards, processes and data standards; empowerment of a new online trading platform; and international trading consultancy and training support.
"Towards this, the BSEC has developed a concept paper. A preliminary estimate suggests a financial cost of about US$ 7.0 million."
The BSEC letter also mentioned that the WB appeared to be useful and interested to facilitate the technical project as a development partner of Bangladesh.
"I would like to request you (the FID) to kindly initiate next steps to engage the ERD to send the proposal to the WB," said the BSEC's letter, signed by its chairman.
It also noted that the capital market requires modern and sophisticated digitalised system to enhance consistency, transparency and efficiency further.
"The BSEC has long been focusing on and exploring the opportunities to use the IT infrastructure in the capital market."
As part of the regulatory move, IT infrastructure of the securities regulator, the stock exchanges, the Central Depository Bangladesh Limited (CDBL), and other capital market-related organisations will be modernised.
The IT infrastructure of the Dhaka Stock Exchange (DSE) drew flacks different times, as investors suffered from technical glitches. Sometimes, the premier bourse was not able to start its trading on time due to the glitches.
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