The securities regulator has taken steps to introduce nationwide 'financial literacy' service in an effort to ensure investors' protection by reducing speculation.
As part of its move Bangladesh Securities and Exchange Commission (BSEC) has formed a four-member committee to formulate a policy guideline on 'financial literacy.'
The policymakers and officials concerned of the securities regulator said their guideline will also include recommendation of attaching a chapter in curriculums of schools and colleges.
Apart from inclusion of chapter in curriculums, the BSEC's policy guideline will propose for mandatory provision on conducting investors' awareness programmes by the stakeholders of the capital market.
"Lack of investors' awareness is one of the major problems responsible for speculation-based investment in the stock market. That's why the regulator has moved to formulate a policy guideline on financial literacy involving the government with the programme," said Arif Khan, a BSEC commissioner.
Khan said their guideline will set an annual target of giving financial literacy to general investors so that they can understand the companies' financial statements and management as well.
"The financial literacy programme will require fund from the government," Khan added.
The committee, comprising BSEC executive director Md Mahbubul Alam, director Farhana Faruqi and deputy director Md Ohidul Islam, will submit its report suggesting how financial literacy service can be introduced to the country's capital market.
The chief of the BSEC committee Mr Alam said their policy guideline will suggest arranging investors' awareness programmes across the country.
"Financial literacy policy guideline will suggest the advertisement on investors' awareness, mandatory responsibilities of stakeholders and the inclusion of a chapter in education curriculums," Alam said.
He said the policy guideline will involve the Ministry of Finance (MoF) and Ministry of Education for attaching literacy chapter in curriculums.
"The guideline can also suggest the involvement of other regulatory bodies. However, the government will take decision on including other regulatory bodies to introduce the nationwide financial literacy service," Alam added. Â
The BSEC committee concerned will submit the report on policy guideline of financial literacy by analysing the same service introduced in other countries.
The securities regulator has set up a capital market education institution named Bangladesh Institute of Capital Market (BICM) in the city in 2010 to create skilled human resources for the capital market.
Along with undertaking investors' awareness programmes, the BICM has certificate and diploma courses on capital market related issues.
Dhaka Stock Exchange (DSE) arranged 19 programmes in 2014 and imparted training to 1,125 participants, whereas a total of 1,329 participants were given training in 2015.
Apart from general investors, the authorised representatives and officials of institutional entities were given training on portfolio management and security analysis, internal audit risk management and control, asset management, technical analysis, financial statement analysis and compliance in corporate governance.
The securities regulator arranged training programmes for 840 participants in fiscal year (FY), 2010-11, 240 participants in FY, 2011-12, 160 participants in FY, 2012-13, 80 participants in FY, 2013-14 and 410 participants in FY, 2014-15.
The Chittagong Stock Exchange (CSE) arranged training programmes for 86 participants in the FY, 2014-15.
mufazzal.fe@gmail.com
BSEC moves to introduce \\\'financial literacy\\\' service
Mohammad Mufazzal | Published: August 31, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
Share if you like