SEC to be restructured with new leadership team: Finance Minister

Finance Minister Amir Khasru Mahmud Chowdhury speaking at a discussion on Tuesday.

Dhaka, Jun 2 – Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday said the government is completely restructuring the Securities and Exchange Commission (SEC) with a new leadership team selected independently on the basis of professional expertise, as part of broader efforts to restore confidence in Bangladesh’s capital market.

He said the reconstituted commission, comprising a chairman and four commissioners, would be announced within the next two weeks.

“We are completely reorganising the Securities and Exchange Commission. Within the next two weeks, people will know about the new team,” the finance minister said while speaking at a pre-budget discussion organised by the Economic Reporters’ Forum at its office auditorium.

Emphasising the independence of the selection process, Khosru said the appointments were made without political considerations.

“No politician’s opinion was taken into account. The selection has been made independently. We have chosen professionals who understand the market and have experience in capital market-related activities,” he said.

The finance minister expressed optimism that the new leadership would help restore investor confidence and attract greater domestic and international interest in Bangladesh’s stock market.

According to him, the government is also amending relevant laws and regulations to create a more transparent and investor-friendly market environment.

“We are already receiving international interest. We are changing the laws and regulations. Many good companies are now approaching us and expressing interest in becoming listed,” he said.

Khosru noted that a number of companies had previously been reluctant to enter the stock market due to concerns over governance and market integrity.

“Many companies used to say they wanted to be listed on a stock exchange, not in what they considered a casino. We are changing that perception,” he said.

The finance minister said the government’s objective is to transform the capital market into a credible source of long-term financing for businesses, reducing excessive dependence on the banking sector.

He observed that banks are currently under pressure as they collect largely short-term deposits but provide long-term loans, creating structural challenges in financing large investment projects.

“Companies should be able to raise funds from the stock market and issue bonds. This will reduce pressure on banks,” he said.

Khosru also pointed to the high lending rates in the banking sector, saying they are creating difficulties for businesses seeking large-scale financing.

“At present, lending rates of 12 to 13 per cent are not feasible for many businesses. When companies need financing of Tk 500 crore or Tk 2,000 crore, banks face challenges because deposits are mostly short-term while lending requirements are long-term,” he said.

Highlighting the importance of a vibrant capital market in supporting economic growth, the finance minister said strengthening the stock market is essential for ensuring sustainable financing of private-sector investment.

“The capital market has to function properly. Inshallah, it will become functional in no time. I can assure you that we are working to make it effective,” he said.

He also encouraged companies and investors to participate more actively in the market as reforms are implemented, expressing confidence that the planned changes would help establish a stronger and more efficient financial ecosystem in Bangladesh. - UNB