The government has allowed the Bangladesh Securities and Exchange Commission financial autonomy which will permit the capital market regulator to spend its income without any finance ministry endorsement. The finance ministry in a letter on Tuesday informed the BSEC that from the next financial year the commission do not need to get its budget approved from the government.
In October 2011 the BSEC had put forward to the finance ministry draft amendments to the Securities and Exchange Commission Ordinance 1993, seeking financial and authoritative independence for the commission.
The ministry, however, at that time, denied endorsing the proposal saying that the purpose of the formation of the commission might deviate if such changes in the basic laws were made.
When the BSEC was established in 1993, it operated on the basis of a grant from the government, but now it receives sufficient income to be able to operate financially independently from the government.
Under the current practice, the government allows the BSEC to spend a specified amount of money.
In FY 2011-12 the BSEC earned Tk 33.52 crore from sources including registration fees, initial public offering and mutual funds approval fees, fines, sales proceeds from tender documents and custodian fees. The government sanctioned Tk 13 crore for spending but the BSEC could spend Tk 8 crore.
In FY 2010-11 the BSEC received income totalling Tk 53.47 crore. The government sanctioned Tk 40.29 crore, but the BSEC could spend only Tk 9.74 crore.
Lengthy process in getting approval from the ministry for the fund was the key reason for low spending, BSEC sources said.
-With New Age input
