The proposed Bangladesh Securities and Exchange Commission (BSEC) Rules, 2023, aimed at enhancing investor protection, have faced strong opposition from stockbrokers, who claim the rules are unfavorable for the market. The rules include provisions for stricter oversight of brokers’ Consolidated Customers’ Accounts (CCA), such as banks verifying cash recipients and regular scrutiny of client lists to prevent misappropriation. The opposition argues the rules would create instability in the capital market, particularly before elections, and have criticized the requirement for brokerage firms to include clients on their boards. Meanwhile, instances of fund embezzlement from CCAs continue, with the latest case involving a Tk 685.8 million shortfall at Moshihor Securities. Despite calls for dialogue, brokers remain resistant, citing concerns about the rules’ impact on market development.
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