The Bangladesh Securities and Exchange Commission (BSEC) is facing a perfect storm of criticism, internal chaos, and a market downturn that’s got everyone from small investors to government officials demanding answers. The Dhaka Stock Exchange (DSE) recently hit a 20-month low, with turnover plunging to a meager Tk313 crore—a number so bleak it’s practically screaming for a liquidity lifeline. At the heart of the turmoil? A controversial floor price mechanism meant to protect small investors (who dominate Bangladesh’s market) but now accused of suffocating trading activity. Meanwhile, BSEC Chairman Khondoker Rashed Maqsood is clinging to his seat like a trader holding onto a sinking stock, with protests, allegations of autocracy, and even an employee lock-in drama piling pressure on his leadership.
The Floor Price Fiasco: Protection or Poison?
Let’s cut through the noise: the floor price rule was supposed to be a safety net for retail investors, but instead, it’s turned into a straitjacket. With only a handful of stocks trading freely above the artificial floor, liquidity has evaporated faster than a puddle in Dhaka’s dry season. Critics argue the mechanism is propping up zombie stocks while killing market dynamism—classic government intervention with unintended consequences. Small investors, the very group it aimed to protect, are now bleeding losses, and the BSEC’s response? A shrug and a vague promise to “discuss liquidity measures” with the government. Bold move, guys. Real bold.
Leadership Crisis: Autocracy, Lock-Ins, and an Army Intervention
If the market chaos wasn’t enough, the BSEC itself is a regulatory dumpster fire. Chairman Maqsood is accused of everything from enabling market manipulators to greenlighting shady IPOs—basically, the kind of governance that makes Enron look like a paragon of transparency. Things got so bad that BSEC employees literally locked Maqsood and his commissioners in their office for four hours, demanding their resignations. Yes, you read that right. The army had to step in to restore order, which is never a good sign for a financial regulator. Now, with Maqsood’s reappointment in limbo, the market is stuck in leadership purgatory, wondering if the next boss will be a reformer or just another political appointee.
Liquidity Crunch & the Blue-Chip Hail Mary
The BSEC keeps blaming the market’s woes on a “fund crisis,” but let’s be real—this is a crisis of confidence. High deposit rates, political instability, and a general “why bother?” attitude have turned the DSE into a ghost town. Some investors are fleeing to blue-chip stocks like it’s a bunker in a financial apocalypse, but that’s just rearranging deck chairs on the Titanic. Meanwhile, the BSEC’s big plan? A committee to hunt down “rumour-mongers.” Because obviously, the problem isn’t structural—it’s just those pesky gossips.
Conclusion: Reform or Bust
The BSEC’s meltdown is a masterclass in how *not* to run a capital market. Between the floor price debacle, leadership scandals, and laughable attempts at damage control, it’s clear this regulator needs an overhaul—not just a new chair, but a full reboot. Investors are voting with their wallets (or lack thereof), and until the BSEC starts enforcing real transparency and liquidity fixes, the DSE will keep sinking. Here’s the bottom line: Bangladesh’s market won’t recover until the BSEC stops being part of the problem and starts being part of the solution. *Boom.*
