Status of Legal Authority of SEC
Status of Legal Authority of SEC. Securities and Exchange Commission was set up on June 8, 1993 under the Securities and Exchange Commission Act, 1993 with a view to protecting the interest of the investors and regulating securities markets in Bangladesh. For the development of securities markets and for the matter concerned therewith or incidental thereto, Securities and Exchange Commission is an independent, quasi-judicial agency of the government, the mission of which is to administer laws in the securities field and to protect investors and the public in securities transactions. Being a corporate body Securities and Exchange Commission has a perpetual succession and a common seal. The Commission consists of five members including chairman, the Chief Executive as follows: i) Chairman, ii) two full time members, iii) one member nominated by the Ministry of Finance not below the rank of Joint Secretary and iv) one member (amongst the Deputy Governor, B-Bank) nominated by Bangladesh Bank. One full times member will be the Vice-Chairman of the Commission. The Chairman and full time members shall be appointed for three years from the date of appointment. They shall be appointed amongst the persons having capability of dealing with the problems relating to the company matters and securities markets or have special knowledge and experience of law, finance, economics, accountancy, administration, discipline etc. Its staff consists of Executive Director, Director and Deputy Director of different Divisions, lawyers, accountants, security analysts, librarian and others.
In our country two organized exchanges, viz., Dhaka Stock Exchange (DSE for short) and Chittagong Stock Exchange (CSE for short) are involved in doing the secondary activities of securities markets as the provision of the Securities and Exchange Commission. These two securities markets take the responsibilities to bring the rules and regulations into effect in any of the transactions in the securities markets except fixing the prices of the securities. No members of the exchanges, in this respect, can isolate the provisions of Securities and Exchange Commission by manipulating the security prices. The Acts, Ordinances, Rules and Regulations are devoted to achieve the objectives of the same guide regulatory functions of the SEC. As per the provision of the Act the Head Office of the Commission shall be located in Dhaka and with the prior approval of the government, the Commission may set-up offices at any other places in Bangladesh.