The Bangladesh Securities and Exchange Commission (BSEC) has restored greater operational autonomy to the country's stock exchanges by empowering the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) to independently determine and implement market control mechanisms, including circuit breakers governing share price movements.
The decision was taken at the BSEC's 1,018th emergency commission meeting on Tuesday, presided over by BSEC Chairman Masud Khan.
As part of the move, the commission revoked Order No. BSEC/Surveillance/2020-975/219, issued on 17 June 2021, which had effectively placed the administration of circuit breakers under direct regulatory oversight.
The development was formally announced on Wednesday through a press release signed by BSEC Executive Director and spokesperson Md Abul Kalam.
According to the regulator, the existing legal framework already grants the DSE and CSE the authority to formulate and enforce a range of market control measures, including the setting of circuit breaker limits. In light of prevailing regulations, policy considerations and operational realities, the commission has now reaffirmed and restored that mandate to the exchanges themselves.
Market participants believe the decision will allow the country's two bourses to respond more swiftly and effectively to evolving market conditions, enabling timely regulatory interventions and enhancing market efficiency. The move is also expected to reinforce institutional independence and strengthen confidence in the operational governance of Bangladesh's capital market.
Explaining the rationale behind the decision, BSEC spokesperson Md Abul Kalam said that although the legal authority to determine market control measures has always rested with the stock exchanges, circuit breakers had in recent years been implemented under specific directives from the commission.
"The commission believes the stock exchanges should exercise the autonomy already provided to them under the existing regulations. Accordingly, the previous order has been withdrawn. This is not a transfer of new powers; rather, it is the restoration of authority that has always existed within the current regulatory framework," he said.
