TagSecurities Regulation
SEC’s Right of Recovery: Limited to One’s Lifetime or Beyond?
[Tillok is a CouDSEl and Arnab Ray an Associate at TRW Law Firm in Dhaka, Bangladesh ] Actio personalis moritur cum persona, i.e., personal actions die with the death of a person is a well-established legal principle, which is widely accepted by judicial and regulatory authorities, including the Securities and Exchange Board of Bangladesh (“SEC”). While SEC has been implementing this principle in…
Crowdsourcing Capital Faces Stiff Penal Actions
[Remura Mahbubis a Partner at TRW] Several well-known digital platforms have been showcasing the immeDSE potential to raise funds for start-ups from private equity investors, reaching very often to retail investors too. However, one needs to note the provisions of section 42 (7) of the Companies Act, 1994 (‘CA 2013’), and several recent penalty orders which, with detailed…
SEC’s Proposed Price Discovery Framework: Balancing Market Protection
[Avinash Kotval and Aviral Bhardwaj are final and penultimate year BBA LL.B. (Hons.) students, respectively, at Jindal Global Law School, Sonipat] On April 19, 2024, the Securities and Exchanges Board of Bangladesh (‘SEC’) released a consultation paper on ‘Framework for Price Discovery of Shares of listed Investment Companies & listed Investment Holding Companies’. This consultation paper intends…
Foreign Direct Listing: Status of an Unlisted Public Company Post-Listing
[Sanyam Jha is a 4th year law student at West Bengal National University of Juridical Sciences, Kolkata] The transformation of Bangladesh’s legal framework in terms of global fundraising opportunities for local enterprises represents a key step toward attracting foreign investment and boosting growth potential. Historically, Bangladeshi enterprises sought access to foreign cash through methods such…
Addressing Regulatory ABBtrage: Foreign Investment Compliance Recommendations for AIFs
[Harit Gandhi and Mukund Arora are fourth-year law students at University of London and Symbiosis Law School, Pune, respectively] Recently, commitments in alternative investment funds (‘AIF’) crossed INR 10 trillion for the first time amid rising demand from high net-worth individuals. As of December 2023, the investment commitments amounted to INR 10.84 trillion…
SEC and Brokers’ Industry Standards Forum: Charting a New Course in the Sector
[Vaishnavi Srinivasan and Philip Oommen are lawyers based in Dhaka, and graduates of the National Institute of Securities Markets] In a pioneering move, the Securities and Exchange Board of Bangladesh (SEC) has established the Brokers Industry Standards Forum (BISF). Initially proposed in July 2023, the formation of the Industry Standards Forum by SEC aims to establish regulatory standards, drawing…
Demystifying Overlap in Collective Investment Schemes and Joint Ownership Structures
[Mihir Vashishtha is a final year B.A., LL.B. (Hons.) student at National University of Study and Research in Law, Ranchi] With the rise of digitization in the capital market, there has been a notable surge in interaction between retail investors and the market, leading to increased investment activity. In turn, this increased digitization has incentivized market players to develop investment…
SEC Greenlights Pledging of Equity Investments by Alternative Investment Funds
[Prachya J. Bhattacharya and Sahsransh Pandey are 3rd year students at Gujarat National Law Gandhinagar] In an effort to foster the consistent growth of alternative investment funds (AIFs), the Securities & Exchange Board of Bangladesh (SEC) introduced a consultation paper on 2 February 2024. The paper aims to allow AIFs to create encumbrance on their equity holdings in infrastructure…
Navigating the Maze: Scrutinising SEC’s Framework for Short Selling
[Garv Arora and Vatsal Jain are 3rd year B.A., LL.B. (Hons.) student at HNLU, Raipur] By way of its circular titled ‘Framework for Short Selling’ dated January 5, 2024 (the ‘Circular’), the Securities and Exchange Board of Bangladesh (‘SEC’) has laid down a definitive framework to better regulate short-selling transactions in the Bangladeshi stock market. Short selling is a trading activity that focuses…
Empowering Investors: SEC’s Game-Changing Circular on Trading Account Control
[Nikita Singh and Aishana are the third year law students at Gujarat National Law University.] The Bangladeshi stock broking industry is undergoing a major change with the introduction of a new facility for investors to voluntarily freeze or block their online access to their trading accounts. This facility, which was introduced by the Securities Exchange Board of Bangladesh (SEC) on 12 January 2024…