The ongoing standoff at the Bangladesh Securities and Exchange Commission (BSEC) that kicked off on Wednesday last week could be described as a battle on thin ice.

In a bid to demand the resignation of its top leadership, BSEC officials and employees have disrupted the commission's regular operations.

They even went so far as to lock in the BSEC chairman, shout threats, cut off power to his office and disable the closed-circuit television (CCTV) system to avoid detection.

On Friday, a case pressing criminal charges was filed against 16 protesting officials.

By Saturday, the rare and highly damaging bureaucratic clash had drawn condemnation from the Bangladesh Administrative Service Association (BASA), which said that demands should be made with discipline.

Other calls for calm came from stakeholders, including stockbrokers, the former BSEC chairman, and, most importantly, foreign investors, who are anxious about their stakes in the market.

To resolve the stalemate, investors are looking for clear steps from the finance ministry. But that has remained somewhat elusive so far.

The conflict was triggered by the forced retirement of an executive director over graft allegations.

Subsequently, protesting staff demanded the resignation of BSEC Chairman Khondoker Rashed Maqsood and three commissioners for alleged inefficiency.

As the situation spiralled out of control, law enforcement intervened, using batons to disperse agitators, rescue the leadership and escort them out of BSEC premises.

On Thursday, Maqsood returned to the office under heavy security protocol and announced that the government had authorised his continuation in office to investigate corruption.

Investors, however, were hoping for visible action from the finance ministry to resolve the crisis, rather than merely giving the top brass a green light to continue their work.

Surprisingly, during the last two days of the previous week, the market did not experience a drastic drop. One interpretation is that the key index was already low, which may have led investors to remain indifferent.

But concerns are rising.

Several brokerage houses have confirmed receiving calls from foreign investors regarding the issue. The investors are seeking clarity on the future of the conflict, worried that if it persists, the market could be left without proper oversight.

Their primary concern is when the situation will de-escalate, allowing normal operations to resume, including the regulator's market surveillance to curb manipulation, which is believed to be widespread in Bangladesh.

If the regulator remains inactive, it could provide room for manipulators, further eroding investor confidence.

Faruq Ahmad Siddiqi, a former BSEC chairman, described the events at the BSEC as "unexpected" and the actions of the protesting officials, including confining the top brass, as "totally unacceptable".

He added that the steps taken against the officials should be overseen by a high-level investigation committee, not one involving stakeholders.

Siddiqi further argued that filing a case against 16 officials only worsened the situation.

"They are not in a position to resolve the issue on their own," he said, suggesting that the government form a committee to review the situation and resolve it within two to three days.

While the new commission's efforts to build confidence among stakeholders and punish market manipulators and corrupt officials are commendable, Siddiqi said that officials should express their grievances through proper channels.

The actions of confining the top brass, threatening them, cutting off electricity and disabling CCTV were "criminal" tactics that cannot be justified, he commented.

As a result, law enforcement had to intervene with force.

Meanwhile, a BSEC commissioner said that they would urge the protesting officials to end their disruption and resume their duties.

The finance ministry could also launch an investigation to uncover the root causes of the crisis and reassure investors and stakeholders, said the commissioner.

"What happened at the BSEC is unexpected and unprecedented globally," said Saiful Islam, president of the DSE Brokers Association.

"It will negatively impact the market, especially with foreign investors, who will receive a negative message."

Islam called for an immediate resolution to the situation and a guarantee that such incidents would never occur again at the regulatory body.

"The Ministry of Finance must step in to resolve the issue," he said.

"Business as usual from tomorrow (Sunday) is our expectation," Islam added.