Bangladesh Securities and Exchange Commission on Monday formed a task force to prepare a report on necessary reforms in the country’s stock market, with plans and recommendations aimed at restoring investor confidence and ensuring good governance in the capital market.

This decision was made during a commission meeting, according to a press release issued by the BSEC.

The five-member task force includes Mohammed Helal Uddin, a professor in the Economics Department at the University of Dhaka; KAM Majedur Rahman, a former managing director of the Dhaka Stock Exchange; AFM Nesaruddin, senior partner at Hoda Vasi Chowdhury & Co; Md Mostofa Akbar, a professor in the Computer Science and Electronics Department at the Bangladesh University of Engineering and Technology; and Al-Amin, an associate professor in the Accounting and Information Systems Department at the University of Dhaka.

The task force will begin its work immediately, as stated in the press release, and all organisations related to the capital market have been instructed to assist them.

Initially, the task force will address 17 key issues; however, the BSEC can expand this scope in consultation with the task force if any other matters are deemed important later.

The group will recommend the formulation of a penal code and guidelines regarding market manipulation, the prosecution of various irregularities, and the rationalisation of penalties.

Additionally, the task force will work on recommendations to strengthen the BSEC’s institutional capacity, improve internal governance, implement necessary data protection initiatives, and enhance the efficiency of commission employees.

It will also develop guidelines and recommendations for collaborating with stakeholders to protect investors’ interests and boost their confidence in the market.

Other areas of focus will include ensuring transparency, accountability, institutional governance, corporate disclosure, and the accuracy of audited financial reports for listed companies.

The task force will also formulate policies aimed at enhancing corporate governance and investor protection while deepening the market.

To facilitate its work, focus groups under the task force will comprise capital market experts, representatives from regulatory agencies, academics, journalists, and market intermediaries.

The BSEC’s action comes in response to protests from a section of investors regarding the ongoing decline in share prices on the country’s stock exchanges.

Since September 1, the DSEX, the key index of the Dhaka Stock Exchange, has dropped by 494.32 points, closing at 5,335.06 points on Monday.

Following the fall of the Awami League government on August 5 amid a student-led mass uprising, stock prices on the DSE initially rose due to investor optimism.

However, the indices began to decline after a few sessions and have continued on a negative trend since then.