Securities and Exchange Commission (SEC) is the supreme authority of capital market in Bangladesh. SEC was established on 8 June 1993. It is formed and regulated by the Securities and Exchange Commission Act. 1993. SEC is under finance ministry of the people’s Republic of Bangladesh. SEC is a statutory organization. The main objective of SEC is to protect the investors. It regulates the capital market by formulating rules.
On 14 November 1993 SEC started functioning. SEC is the authoritative controller of stock exchanges in Bangladesh. If any company wants to issue shares in the stock market it has to take permission from SEC.
SEC is responsible for improving capital market by developing facilities for both investors and companies and ensuring the efficient and effective management of the capital market.
So, SEC virtually controls the capital firm households to corporate bodies thereby helping industrialization and creating employment.
Objectives of SEC
SEC is the authority to regulate and control the capital market in Bangladesh. It’s a statutory organization. They are the essential objectives of SEC as follows:
- To monitor, investigate and control the capital market,
- To ensure development and evolution of share market,
- To regulate the share or debenture issue.
- To provide a convenient environment for both investors and companies.
- To observe and ensure the rules and regulations those are followed in transactions.
- To formulate policies for the capital market.
- To establish a new stock exchange.
- To protect frauds and other misdeeds.