Securities and Exchange Commission and it’s Affect on the Bangladeshi Capital Market

Abstract

The Securities and Exchange Commission (SEC) was established on 8th June, 1993 to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate stock exchanges. SEC has made every effort in strictly supervising the compliance of various laws, rules and regulations. Already they have developed some laws and made amendments to make the stock exchange function more effectively. Bangladesh being a developing country, security market is very important source for the growth and development of the industrial section. SEC is working for a healthy economic capital, active administrated securities market. But SEC it self is not smooth & efficient. There are few problems has been arise after it established. SEC is working on some new projects and plans. SEC introduce an online database called EDGAR from which investors can access this and other information filed with the agency. In the same online system also takes tips and complaints from investors to help the SEC track down violators of the securities laws. Apart from the macro policy of contributing to the development of the national economy through harmonization with monetary policy, securities policy dealing with securities houses and markets, generally pursue three broad objectives- Firstly, to improve the efficiency of securities market. Secondly, to ensure the stability and soundness of the financial system. Thirdly, to protect investors rights. In this paper I have shown the different departments and functions of the SEC. In the second and third section I have tried to discuss the reforms that SEC has made in the primary and secondary market. In the forth section I have discussed some of the amendments made by the SEC. In SEC four I have provided some recommendations for the improvement of regulatory systems of Bangladesh capital market finally, section five contains a conclusion.