Dhaka, Bangladesh (BBN) – The government has formed a panel to oversee the implementation of a set of reforms prescribed by the Asian Development Bank (ADB) for the stock market, officials said.
The banking division of the finance ministry came up with the 11-member committee on Monday in line with the lender’s conditions attached to a $300-million credit, they added.
Banking Division Secretary M Aslam Alam has been made the chief of the committee.
“The committee will look into the implementation of the 25 conditions set for the development of Dhaka and Chittagong stock exchanges,” a committee bember said, adding that they will coordinate among all the stakeholders and ensure that the project is completed on time.
The major conditions of the lender include demutualization of the bourses, and amendments to the Banking Companies Act, and the Insurance Act 2001.
The ADB also recommended for setting up a special capital market tribunal and developing the bond market.
It said the capital market tribunal will help the stock regulator detect trading irregularities and market abuse, leading to a rise in investor confidence.
On November 29 last, the ADB signed an agreement with the government to provide the $300-million credit –$150 million as soft loan, $55 million as hard loan and $95 million as ordinary capital resource under the project.
BBN/SSR/AD-16Dec12-12:30 pm (BST)