The securities regulator has moved to launch the nationwide financial literacy programmes targeting existing, new and future investors to ensure their risk free investments in financial markets.
As part of continuous job of conducing of financial literacy programmes, the Bangladesh Securities and Exchange Commission (BSEC) Tuesday approved the proposal of opening a financial literacy department at the BSEC office.
"The securities regulator will collect a fund worth around Tk 75 million required for conducting the nationwide financial literacy programmes," a BSEC official said.
The regulatory initiative came in the backdrop of making investment without proper knowledge and assessment about the risks of the financial markets.
In this regard, Mahbubur Rahman, a BSEC executive director, said the securities regulator is working to introduce financial literacy programme to ensure investors' self-protection from financial frauds.
"This programme will help to build a financially secured future along with making individuals more responsible with a discipline approach to their hard-earned money," Rahman said.
The securities regulator will play a pivotal role in introducing nationwide financial literacy programmes.
The other professional bodies such as Institute of Chartered Accountants of Bangladesh (ICAB), Institute of Cost and Management Accountants of Bangladesh (ICMAB), Institute of Chartered Secretaries of Bangladesh (ICSB) and other educational institutions like Bangladesh Institute of Capital Market (BICM), Bangladesh Institute of Bank Management (BIBM) and business schools will also work the BSEC in launching financial literacy programmes.
The securities regulator has set different timeframes in implementing literacy programmes by providing nationwide instructions, formulating committees and councils comprising different stakeholders of the capital market.
The short term goals will be implemented during 2016-17 targeting existing investors, employees of stakeholders, teachers and trainers, defense officers, judges, lawyers and journalists.
Midterm programmes will be implemented during 2018-19 and the target groups will be school, college, universities, civil and public servants, private sector officials, NGO employees, physicians, engineers and middle income group.
Long term programmes will be implemented during 2020-21 targeting the home makers, retired personnel, businessmen, workers and general public.
According to a presentation made by Mahbubur Rahman, a BSEC executive director, many investors make investments without risk bearing capacity and take high cost of debt in absence of repayment ability.
He said investors also have a tendency of investing in a single or similar product without searching the alternatives.
"As a result, those investors incur loss, get frustration, turn back from financial markets and financial market suffer and become illiquid," said Mahbubur Rahman, also a member of the four-member BSEC committee formed to recommend on financial literacy programme.
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