SEC for three-fold increase of staff
Friday, 7 May 2010
Kayes M Sohel
The understaffed securities regulator is expected to add more muscle to make monitoring of the burgeoning stock market stronger and faster.
The Securities and Exchange Commission (SEC) recently wrote to the finance ministry with a proposal to enhance its staff strength three-fold insisting that the commission has been failing to cope with mounting task because of shortage of workforce.
The stock market grew manifolds over the years, but the staff strength did not keep up with the pace, causing a backlog of tasks, the letter mentioned.
"It has become tough to finish the job smoothly with the existing number of staff," SEC chairman Ziaul Haque Khondker told the FE. "It is now the crying-need of the commission to ensure accountability and transparency," he said.
The SEC, established in 1993, proposed to raise its staff from 115 in 19 categories to 318 in two phases in five years.
Under the proposal, posts of executive directors are required to be raised to nine from the existing seven, directors to 15 from nine, deputy directors to 31 from 16, assistant directors to 35 from 15, personal officers to 29 from 21 and car drivers to 22 from 14.
The SEC has provided 78.27 per cent of its total annual expenditure in 2004, 80.65 per cent in 2005, 80.65 per cent in 2006 and in 2007, and 100 per cent in 2008 from its own coffers.
The income of the SEC from penalties slapped on rogue companies has increased. If the proposed number of staff is appointed, it will cost an additional Tk 16 million. "The commission is able to defray its own expenses," the letter contained.
Dhaka Stock Exchange (DSE) market capitalisation rose to Tk 2253.55 billion, up by 3,227.0 per cent higher than Tk 67.73 billion in the last 14 years. Chittagong Stock Exchange market cap increased to 12,307.0 per cent to Tk 1,823.87 billion in the same period.
Beneficiary Owner's account jumped to 235.0 per cent to 2,199,500 recorded in 2010 from 657,086 in 2005.
"The commission is facing serious problems in examining annual and half-yearly reports of hundreds of listed companies in due time because of the existing shortage of staff,' said Mr Khondker. But it is necessary to accomplish the task in time for the sake of the market and investors, he said.
Presently, DSE has 402 listed companies and debentures and CSE has 320. Thirty-one merchant banks and 11 asset management companies are currently operating in the market.
Number of stockbrokers in DSE increased to 238 in 2010 from 195 in 1996 while in CSE, the number of stockbrokers to 150 in 2010 from 71 in 1996. Around 600 branch offices of brokerage houses are also operating across the country.
The understaffed securities regulator is expected to add more muscle to make monitoring of the burgeoning stock market stronger and faster.
The Securities and Exchange Commission (SEC) recently wrote to the finance ministry with a proposal to enhance its staff strength three-fold insisting that the commission has been failing to cope with mounting task because of shortage of workforce.
The stock market grew manifolds over the years, but the staff strength did not keep up with the pace, causing a backlog of tasks, the letter mentioned.
"It has become tough to finish the job smoothly with the existing number of staff," SEC chairman Ziaul Haque Khondker told the FE. "It is now the crying-need of the commission to ensure accountability and transparency," he said.
The SEC, established in 1993, proposed to raise its staff from 115 in 19 categories to 318 in two phases in five years.
Under the proposal, posts of executive directors are required to be raised to nine from the existing seven, directors to 15 from nine, deputy directors to 31 from 16, assistant directors to 35 from 15, personal officers to 29 from 21 and car drivers to 22 from 14.
The SEC has provided 78.27 per cent of its total annual expenditure in 2004, 80.65 per cent in 2005, 80.65 per cent in 2006 and in 2007, and 100 per cent in 2008 from its own coffers.
The income of the SEC from penalties slapped on rogue companies has increased. If the proposed number of staff is appointed, it will cost an additional Tk 16 million. "The commission is able to defray its own expenses," the letter contained.
Dhaka Stock Exchange (DSE) market capitalisation rose to Tk 2253.55 billion, up by 3,227.0 per cent higher than Tk 67.73 billion in the last 14 years. Chittagong Stock Exchange market cap increased to 12,307.0 per cent to Tk 1,823.87 billion in the same period.
Beneficiary Owner's account jumped to 235.0 per cent to 2,199,500 recorded in 2010 from 657,086 in 2005.
"The commission is facing serious problems in examining annual and half-yearly reports of hundreds of listed companies in due time because of the existing shortage of staff,' said Mr Khondker. But it is necessary to accomplish the task in time for the sake of the market and investors, he said.
Presently, DSE has 402 listed companies and debentures and CSE has 320. Thirty-one merchant banks and 11 asset management companies are currently operating in the market.
Number of stockbrokers in DSE increased to 238 in 2010 from 195 in 1996 while in CSE, the number of stockbrokers to 150 in 2010 from 71 in 1996. Around 600 branch offices of brokerage houses are also operating across the country.