A 2008 Asian Development Bank (ADB) ³Improvement of Capital Market and InsuranceGovernance Project´ program administration memorandum notes that despite recentimprovements, Bangladesh¶s capital market is still underdeveloped and weaknesses in corporategovernance persist. The Bank also points to "inadequate market supervision" as one of the key problems. A 2009 paper by Javed Siddiqui published in the Journal of Business Ethics further explains that the corporate sector in Bangladesh is characterized by high ownershipconcentration, lack of shareholder involvement and reluctance on the part of the investor to raisecapital through the stock market. Efforts to improve corporate governance, however, are beingmade at various levels. Since 1999, the ADB has been involved in a project (which is scheduledto be completed in 2009) to strengthen the capacity of the Securities and Exchange Commission(SEC), the Bangladeshi capital market regulator. In 2003, the Bangladesh Enterprise Institute(BEI), a donor-funded private sector think-tank developed a code of corporate governance.Furthermore, the SEC issued an order on corporate governance to be implemented on a comply-or-explain basis by listed companies in 2006. Among other initiatives, the BEI, in partnershipwith the United States Agency for International Development is currently involved in a projecton ³Promoting Governance, Accountability, Transparency, & Integrity´ to be completed in 2012and has also been conducting several training programs on corporate governance.
The Investor Protection Index
is a subcomponent of the World Bank's 2009 Doing BusinessIndicators. The Investment Protection Index consists of three dimensions of investor protection:transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), and shareholders' ability to sue officers and directors for misconduct(Ease of Shareholder Suits Index). The indexes range between 0 and 10, with higher valuesindicating greater disclosure, greater liability of directors, greater powers of shareholders tochallenge the transaction, and better investor protection. Bangladesh scores 6.0 in the DisclosureIndex, against a regional average of 4.3 and an OECD average of 5.9. It scores 7.0 in theDirector Liability Index, against a regional average of 4.3 and an OECD average of 5.0 and 7.0