BSEC bars former DSE regulatory chief from all capital market roles
The regulator says Khairul Bashar Abu Taher Mohammed failed to complete inspections of seven TREC holders within the stipulated timeframe, citing gross negligence.
Highlights:
- BSEC bars former DSE chief regulatory officer
- Bashar barred from official capital market positions
- Regulator cites failure to complete seven inspections
- BSEC says negligence violated regulatory requirements
- Action aimed at protecting investors and market governance
The Bangladesh Securities and Exchange Commission has barred former Dhaka Stock Exchange chief regulatory officer Khairul Bashar Abu Taher Mohammed from holding any official position in listed companies or other institutions operating under the country's capital market regulatory framework.
In an order issued on Thursday (30 July), the securities regulator said the ban takes immediate effect.
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According to the order, all stock exchanges, market intermediaries, listed companies and other entities regulated by the BSEC have been instructed not to appoint Bashar to any official position related to the capital market.
The commission said that on 14 May 2024, Bashar, then serving as the DSE's chief regulatory officer, was assigned to inspect seven TREC holders, including Mashihor Securities Ltd, and submit an inspection report within 30 working days.
However, he failed to complete the inspections and submit the report within the stipulated timeframe, an act the BSEC described as gross negligence and a violation of the rules.
The regulator said the decision was taken to protect investors' interests and strengthen market governance.
Market officials said one of the key responsibilities of a stock exchange's chief regulatory officer is to conduct regular inspections of brokerage firms, detect regulatory violations and submit inspection reports to the BSEC on time. These reports form the basis for the commission's enforcement actions, investigations and regulatory interventions.
Failure to submit such reports within the prescribed timeframe can significantly undermine the market surveillance process, officials added.
Bashar's alleged negligence first drew widespread attention following the high-profile Mashihor Securities scandal, in which the brokerage firm was accused of misappropriating approximately Tk161 crore belonging to investors. The incident is regarded as one of the largest brokerage frauds in Bangladesh's capital market history.
According to the BSEC's findings, despite being responsible for regulatory oversight, Bashar failed to ensure timely on-site inspections and effective supervision of Mashihor Securities.
