The Bangladesh Securities and Exchange Commission is set to conduct an assessment in the next two years to identify and address the underlying threats in the capital market.
The assessment will look into market volatility and risk factors of intermediary players such as bourses, stockbrokers, stock dealers, merchant banks and asset management companies.
After defining and classifying the vulnerabilities, the stockmarket regulator will develop a strategy to deal with the problems.
Arif Khan, a commissioner of the BSEC, said the stockmarket regulator has already started work on the assessment with Asian Development Bank.
The assessment and risk-based supervision is a major task in the five-year action plan BSEC handed to the finance ministry recently.
The 14-point work plans include: setting up a clearing corporation for trade settlement of shares on the same day by 2016, a commodity exchange by 2017 and regulatory framework for derivatives products by 2015.
The BSEC at a meeting yesterday formed three separate panels, consisting three members each, to prepare a set of recommendations on the issues.
The committee on clearing corporation will be headed by BSEC Executive Director Saifur Rahman, while the panel on derivatives will be led by Executive Director Farhad Ahmed and the committee on commodity exchange by Executive Director Mahbubul Alam.
As per the five-year plan, the BSEC by the year-end will implement a separate payscale for its employees similar to the central bank.
Between 2015 and 2018, the regulator will modify the securities rules, laws, regulations and notifications and will publish them both in Bengali and English.
During the period, the BSEC will purchase electronic data gathering and retrieval system and install it, according to the plan.
The regulator will also propose the government to formulate a national policy on financial literacy and introduce course in schools and colleges.