“We will not bow to any pressure”: BSEC chief

The chief of the securities regulator reaffirms that he will continue discharging his duty that he has been entrusted with by the government and that he would not bow to any pressure.

Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Khondoker Rashed Maqsood spoke at a press briefing around 3:30pm on Thursday, minutes after he entered his office, flanked by army personnel and police.

There was a day-long agitation the day before at the BSEC as disgruntled officials held the top brass hostage and demanded their resignation in protest against sending an executive director into forced retirement. Army personnel then stormed into the office and got the BSEC chief and three commissioners released.

Mr Maqsood's claim is that Wednesday's situation was an outcome of actions taken by the securities regulator against corrupt practices within and outside the organisation hampering the growth of the capital market.

"The government has spoken with us already, told us to continue our job. We have already received seven investigation reports [out of a probe into irregularities involving 12 listed companies]. We will take enforcement actions, whatever it takes. We will not bow to any pressure," said the BSEC chief at Thursday's press briefing.

Strong action will be taken against those found involved in irregularities, he said, referring to probe findings.

"When enforcement actions will be over we will publish all the probe reports on the website," added Mr Maqsood.

BSEC employees continued their protest and observed work abstention on Thursday, demanding that the chairman and the commissioners step down.

Other demands include no show-cause notices to BSEC officials based on "disputed investigations" and cancellations of previously issued show-cause notices.

The enraged officials arrived at office at the usual time on Thursday but refrained from performing duties. A meeting was convened to discuss their next course of action.

"Strike to Continue"

Protesters held a press conference at the BSEC auditorium around 2:00pm before the commission's press briefing.

They said the chief and commissioners must resign immediately and that the commission must apologize unconditionally for calling military personnel under "false pretense" the day before and for the baton charge at BSEC officials.

The chief advisor must appoint a "qualified chairman and commissioners with experience" relating to the capital market, protesters said at the press meet.

Mohammad Abul Hasan, convenor of the BSEC Officers' Welfare Association, said the strike would continue until their demands were met.

He labeled BSEC Commissioner Mohsin Chowdhury as a "fascist collaborator".

In a written statement, Mr Hasan said Mohsin Chowdhury in 2017 served as the personal secretary to the then expatriates' welfare and overseas employment minister Nurul Islam under the authoritarian government. In 2019, as a reward for his role in the vote-rigging in the 2018 elections, he was promoted to the position of additional secretary at the Public Security Division of the Ministry of Home Affairs.

Later, as a "reward for his sycophancy", he was promoted to the position of secretary under the Awami League-led government, reads the statement.

BSEC Executive Director Mohammad Rezaul Karim and member secretary of the BSEC Officers' Welfare Association Mohammad Miraj Us Sunnah were present at the event.

DBA, BMBA express concerns

Meanwhile, the DSE Brokers Association of Bangladesh (DBA) and the Bangladesh Merchant Bankers Association (BMBA) expressed concerns over the tense situation at the BSEC.

They demanded the intervention of the ministry concerned for a quick solution in the greater interest of the capital market.

In a statement, DBA President Saiful Islam said the country's capital market had been going through a critical period as a result of many negative events and decisions at home and abroad.

Millions of investors have lost their capital and become destitute and market intermediaries are suffering from an existential crisis, he added.

The situation that arose between BSEC top brass and employees created "deep anxiety and frustration" among market investors, said the DBA in a statement. If the ongoing issues within the commission are not addressed quickly, there will be further exodus of foreign investors, reads the statement.

In another statement issued by the BMBA on Thursday, Muhammad Nazrul Islam, secretary general of the organisation, said the capital market had long been suffering from a liquidity crisis and that investor participation in the capital market was falling gradually amid a lack of confidence.

"The ongoing volatile situation may have further negative impacts on the market, which is unwanted."

If this crisis is not resolved quickly, local and foreign investors may turn away from the market and entrepreneurs will be discouraged from raising money from the market, said the BMBA press release.

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