BSEC empowered to formulate own annual budget

Mohammad Mufazzal | Published: November 08, 2013 00:00:00 | Updated: November 30, 2024 06:01:00

The ministry of finance (MoF) has empowered the securities regulator to formulate its own annual budget without taking the approval of the government, officials said.
The latest move taken by the MoF comes following a strong demand made by the Bangladesh Securities and Exchange Commission (BSEC) and a recommendation made by the Asian Development Bank (ADB) as well.
The ministry ensured the empowerment of formulating the BSEC budget through a letter received by the securities regulator Thursday (yesterday).
"No allotment will be allocated in favor of the securities regulator from the next revised budget of the fiscal year (FY) 2013-14. The commission will be able to spend its own income and they need no government approval in formulating the annual budget," the letter of the MoF reads.
The securities regulator has been asked to take necessary steps in implementing the power of formulating the BSEC budget.
The BSEC commissioner Professor Helal Uddin Nizami termed the empowerment of formulating their budget as another success to way of self-dependent.
"The BSEC officials have become more proactive following the initiatives of the commission and the MoF," said Mr. Nizami.
The BSEC Executive Director Mohammad Saifur Rahman said that the securities regulator has been depending on its own income since last six years.
"The securities regulator has a fund as per the section 12 of the Securities and Exchange Commission Rules, 1993. The BSEC income is also the income of the government. That's why the securities so far had to take government approval in spending this income," Rahman told the FE.
He said from now on the securities regulator will face no complexity for ensuring the budget allocation. Â
"The approval of the MoF to the budget formulation will help the securities regulator to accelerate its activities," Rahman said.
The income of the securities regulator comes from BO (beneficiary owner's) account fees, license fees, IPO (initial public offering) fees and the penalty imposed on the companies and stakeholders for breaching the securities rules.
In the FY 2010-11 and 2011-12 the incomes of the securities regulator were Tk 937 million and Tk 335 million respectively.