The Dhaka Stock Exchange (DSE) has welcomed the Bangladesh Securities and Exchange Commission’s (BSEC) decision to restore the exchanges’ authority to independently determine and implement market control parameters, calling the move a milestone for strengthening market efficiency and bringing Bangladesh’s capital market closer to international standards.
In a statement issued on Thursday, the bourse said the regulator’s latest order empowers the DSE and the Chittagong Stock Exchange (CSE) to set and implement market control parameters in line with their respective regulations, policies and operational requirements.
The BSEC issued the order on Wednesday under Section 20A of the Securities and Exchange Ordinance, 1969, to strengthen investor protection, ensure fair, efficient and transparent trading, maintain orderly market conditions and facilitate the overall development of the capital market.
The order follows the commission’s decision at its 1,018th emergency meeting on Tuesday to repeal a June 17, 2021 directive that had vested authority over market control parameters with the regulator.
With the repeal, the exchanges have regained the authority to determine and implement measures such as circuit-breaker limits and other market control mechanisms under their own regulatory framework.
The order requires the DSE and CSE to immediately notify the BSEC of any changes to market control parameters and ensure those changes are properly communicated to all market participants.
The regulator also said the existing market control parameters will remain in force until the exchanges decide otherwise.
Welcoming the decision, the DSE said restoring the exchanges’ authority over market control parameters would enhance operational efficiency and support the capital market’s development in line with international best practices.
