Fighting against corruption first priority: Masrur Reaz

Ensuring good governance in the country's capital market is the first priority of newly-appointed Chairman of the securities regulator Dr. M Masrur Reaz.

"The revolution done by the youths paved the way for ensuring good governance in the market," said Mr Reaz in a telephonic interview with The FE immediately after his appointment on Tuesday as the chief of the Bangladesh Securities and Exchange Commission (BSEC) for a four-year term.

He said he would eliminate corrupt practices of market stakeholders and improve the depth of the capital market through reforms and listing of good companies.

Product diversification is also on the agenda of the new chief of the BSEC, which would help investors reduce investment risks.

Mr Reaz has replaced Prof Shibli Rubayat-Ul Islam who stepped down on Saturday five days after the fall of former prime minister Sheikh Hasina in the wake of a mass uprising.

Before the appointment as BSEC chief, Mr Reaz was serving as chairman and CEO of Policy Exchange Bangladesh, a private sector advisory institute focusing on applied economic policy for economic growth and creation of markets.

He is an economist specialising in the private sector and a former senior economist/programme manager at the World Bank Group operating in several countries in East Asia and Pacific, and South Asia regions.

"A comprehensive action plan will be fixed for long-term financing through different products including bonds," he said.

The capital market will have to be utilised for long-term financing as to reduce financing through banks, Mr Reaz said. Moreover, institutional investments should be expanded.

On challenges ahead, the new BSEC chairman said he would only be able to identify those while executing his plans.

"Fighting malpractices will be a big challenge for us," said Mr. Reaz. The weaknesses of the capital market will be addressed.

The restoration of investors' confidence is another big challenge.

The BSEC chief, however, expressed the hope that once market manipulations and other fraudulent activities are dealt with investors will automatically regain faith in the market's potential.