However, the investment ban remains in force for officers and employees of stock exchanges, CDBL, CCBL, the Bangladesh Institute of Capital Market (BICM) and the Bangladesh Academy for Securities Markets (BASM).
TBS Report
14 October, 2026, 09:30 pm
Last modified: 14 October, 2026, 09:35 pm
The Bangladesh Securities and Exchange Commission (BSEC) has relaxed its blanket ban on capital market investments by board members of market intermediaries, allowing directors of stock exchanges, depositories and clearing houses to invest in securities subject to mandatory quarterly disclosures.
In a directive issued on 12 October and signed by BSEC Chairman Masud Khan, the regulator amended its earlier order of 1 September by removing "Directors" from the list of those barred from investing in the capital market.
Under the revised rules, directors of stock exchanges, Central Depository Bangladesh Ltd (CDBL) and Central Counterparty Bangladesh Ltd (CCBL) must submit quarterly disclosures of their personal and institutional investments in capital market securities to the commission within 10 days of the end of each quarter.
However, the investment ban remains in force for officers and employees of stock exchanges, CDBL, CCBL, the Bangladesh Institute of Capital Market (BICM) and the Bangladesh Academy for Securities Markets (BASM).
The regulatory change is expected to bring governance standards in line with market realities while allowing experienced business leaders to participate in the capital market, market insiders said.
Directors of stock exchanges and market intermediaries are often drawn from trading right entitlement certificate (TREC) holders, corporate leaders and industry experts. A blanket ban on their investments in equity securities could discourage experienced professionals from joining these boards, they said.
Replacing the outright ban with mandatory quarterly disclosures could improve transparency by enabling the Bangladesh Securities and Exchange Commission (BSEC) to monitor directors' investments while allowing them to participate in the market.
However, the revised framework could increase the regulator's monitoring burden. The requirement for self-declared quarterly disclosures means the BSEC will need to audit transactions and verify compliance to ensure the rules are properly enforced, market insiders said.
The change could also create potential conflicts of interest if directors trade on price-sensitive information before it becomes public, potentially undermining market fairness despite the disclosure requirements, an executive of an asset management company said.