North South University: Securities Law and Competition Law

North South University
Center of Excellence in Higher Education

The First Private University in Bangladesh
School of Humanities and Social Sciences

Department of Law
Course: LLM 516

Securities Law and Competition Law
Lecture: 2 (3 February, 2023)
Dr. Md. Jakerul Abedin

Adjunct Faculty
Today’s Lecture Outline
 AnyDifficulties?
Group Adjustment
Research Topic Approval
Research Queries and Progress
General Discussions on Research
General Discussions on the Subject
Wednesday, June 14, 2023 2
Research Progress Report

The ………..?
The ………..?
The ………..?
Research Progress Report


More on Research Assignment
Why can't I just Google?
https://youtu.be/N39mnu1Pkgw
8. Your Obligations: For details, see Course Outline

Any Difficulties?
Group Adjustment?

Research Topic Approval

Research Queries and Progress
General Discussions on Research

General Discussions on the Subject

Securities Law
Link: https://sec.gov.bd/home/laws
Categories of Instruments: Securities Laws,

Rules, Regulations, Order, Notification,
Directive, Guideline etc.
Important Instruments : Ordinance, Act

(আইন), Rules (বিধিমালা), Regulations
(প্রবিধানমালা)
Securities Law
Word File Display
Categories of Instruments: Securities Laws,
Rules, Regulations, Order, Notification,
Directive, Guideline etc.
Important Instruments : Ordinance, Act

(আইন), Rules (বিধিমালা), Regulations
(প্রবিধানমালা)
Homework
Homework 1
Group 1:
Group 2:
Written Assessment on Homework
(Marked? Or Un-marked?)
Securities Law: Related Institution
National
Bangladesh National Web Portal
Ministry of Finance: Financial Institutions Division
Bangladesh Bank
Bangladesh Competition Commission
Bangladesh Institute of Capital Market (BICM)
Central Depository Bangladesh Limited (CDBL)
Bangladesh Academy for Securities Markets (BASM)
Central Counterparty Bangladesh Limited (CCBL)
The Bangladesh Institute of Development Studies (BIDS)
Bangladesh Bureau of Statistics
Securities Law: Institution
International
 Competition Commission of India

 International Organization of Securities Commissions
(IOSCO): https://www.iosco.org
 International Competitions Commission:
 International Competition Network:
https://www.internationalcompetitionnetwork.org/

Financial Institutions Division (FID)

Statutory Authority/Directorate
https://sec.gov.bd/home/about
.
 The Bangladesh Securities and Exchange Commission (BSEC)
was established on 8th June, 1993 as the regulator of the
country’s capital market under the provision of Bangladesh
Securities and Exchange Commission Act, 1993.
 The purpose of the Commission is to protect the interest of
investors in securities, develop the securities market and make
rules for matters connected therewith or ancillary thereto.
 The Commission consists of the Chairman and four
Commissioners who are appointed for full time by the
Government.
.
 The Chairman acts as the Chief Executive of the

Commission.
 The Commission is a statutory body and attached to the
Ministry of Finance.
 BSEC is an ‘A’ category member of International
Organization of Securities Commissions (IOSCO) since
22 December 2013.
.
Mission of BSEC
Bangladesh Securities and Exchange Commission was

established with the aims of protecting the interest of
investors in securities, developing the securities
market and promulgating rules on these issues or on
related matters thereunder.
.
Thus, the mission of the Commission is

 protecting the interest of investors in
securities;
 developing the securities market;
 formulating rules on securities related
matters or on related topics thereunder.
.
Main Functions
The Commission's main functions are:
 Regulating the business of the Stock Exchanges or any
other securities market.
 Registering and regulating the business of stock-brokers,
sub-brokers, share transfer agents, merchant bankers and
managers of issues, trustee of trust deeds, registrar of an
issue, underwriters, portfolio managers, investment
advisers and other intermediaries in the securities market
.
Main Functions
 Registering, monitoring and regulating of collective investment
scheme including all forms of mutual funds.
 Monitoring and regulating all authorized self regulatory
organizations in the securities market.
 Prohibiting fraudulent and unfair trade practices relating to
securities trading in any securities market.
 Promoting investors’ education and providing training for
intermediaries of the securities market.
 Prohibiting insider trading in securities.
.
Main Functions
 Regulating the substantial acquisition of shares and
take-over of companies.
 Undertaking investigation and inspection, inquiries
and audit of any issuer or dealer of securities, the
Stock Exchanges and intermediaries and any self
regulatory organization in the securities market.
• Conducting research and publishing information.
.
Securities Laws, Rules, Regulations:

https://www.sec.gov.bd/home/laws
Securities Related Ordinance, Act, Rules and
Regulations (Updated upto December, 2015):
https://www.sec.gov.bd/home/lbook


.
VISION:
To be the leading exchange in the region and a key

driver of economic growth with state-of-art technology
and world class service to ensure highest level of
confidence among stakeholders.
.
MISSION:
 Proactive approach to keep pace with continuous technological
advancement, and providing highest standard of service through
efficiency improvement and introduction of new products.
 Contributing to country's economic growth through creation of
wealth, facilitating access to capital and penetrating untapped
market.
 Superior corporate governance to enhance confidence of
investors, regulators, issuers and intermediaries.
.
The major functions are:

• Listing of Companies (As per Listing Regulations).
• Providing the screen based automated trading of listed
Securities.
• Settlement of trading (As per Settlement of Transaction
Regulations).
• Gifting of share / granting approval to the
transaction/transfer of share outside the trading system of the
exchange (As per Listing Regulations 47).
.
The major functions are:

• Market Administration & Control.
• Market Surveillance.
• Publication of Monthly Review.
• Monitoring the activities of listed companies (As per Listing
Regulations).
• Investors grievance Cell (Disposal of complaint bye laws 1997).
• Investors Protection Fund (As per investor protection fund
Regulations 1999).
• Announcement of Price sensitive or other information about listed
companies through online.
.
OBJECTIVES:
Commercial:
• Achieve a sustainable average daily turnover of BDT 25
billion.
• Ensure steady domestic and offshore institutional
investments of at least three fourth of the total investments in
the market.
• Attract more foreign investments to attain a steady level of
at least 30% of the total market capitalization.
.
OBJECTIVES:
Commercial:
• Double the total number of listed securities (other than
Government Bills and Bonds).
• Increase depth and liquidity of bond market, including
bringing in the Government Securities under trading net.
• Increase breadth by listing new products, i.e. Index
futures, ETF, Sukkuk and derivatives.
.
OBJECTIVES:
Knowledge Development: Enhance knowledge of general investors
to ensure an aware and educated investor base.
Governance: Ensure effective separation of regulatory function
from commercial operation and Enhance corporate governance and
ensure investors' protection.
Technology: Deploy State-of-Art technology through continuous
but prudent and effective investment.
Human Resources Development: Ensure continuous learning for
employees through effective training and Ensure optimum
organizational structure.
.
Rules and Regulations
o TREC Regulations
o Listing Regulations
o The Exchanges Demutualization Act 2013
o Demutualization Scheme
o Memorandum and Articles of Association
o Corporate Governance Code
o Settlement Regulations
o Settlement Guarantee Fund Regulations-2013
o Short-Sale Regulations-2006
.
o Automated Trading Regulations-99
o Investors Protection Fund Regulations
o Margin Rules-99
o TREC Holder Margin Regulations
o Board and Administration Regulations
o Securities Related Laws
.
TREC Regulations
• TREC Regulations - 2020 (Reference)
• TREC Regulations - 2013 (Repealed)
• Stock-Dealer, Stock-Broker, Authorized Representative
Regulation- 2000
Listing Regulations
• Listing Regulations, 2015 (Reference)
• Listing Regulations (Repealed)
• Process of Listing

The Chittagong Stock Exchange (CSE)

The Chittagong Stock Exchange (CSE)
The Chittagong Stock Exchange (CSE) began its journey in

10th October of 1995 from Chittagong City through the cry-
out trading system with the promise to create a state-of-the art
bourse in the country.
Founder members of the proposed CSE approached the
Bangladesh Government in January 1995 and obtained the
permission of the Securities and Exchange Commission on
February 12, 1995 for establishing the country's second stock
exchange.
Competition Law: Institution
Ministry of Commerce
http://ccb.gov.bd/
Competition Commission
Bangladesh is a developing country. To reach in the

list of middle income countries by 2021 and in the
rank of the developed countries within 2041, we
need to make a desired growth through increasing
investment by reducing unequal competition in the
trade and business.

To ensure the availability of products and services of

the common people at the competitive price and to get
the maximum utility of the product, it is essential to
create a healthy competitive environment in the
market. The goal of the Competition Commission is to
create equality in the market by creating sustainable
competition in the economy, ensuring consumer
interest and best practice in the market.
•Competition Law
In 2012, the Competition Act was enacted in
Bangladesh. The Act is made to promote, ensure and
sustain congenial atmosphere for the competition in
trade, and to prevent, control and eradicate collusion,
monopoly and oligopoly, combination or abuse of
dominant position or activities adverse to the
competition. There are 46 sections in the Act.
•Competition Law
Before this law was enacted, the Monopolies and
Restrictive Trade Practices (Control and Prevention)
Ordinance, 1970 was in force in Bangladesh. It has
been repealed by the Competition Act, 2012.


•Bangladesh Competition Commission
To achieve the objectives of the Act, the Government
of Bangladesh has formed Bangladesh Competition
Commission under the provisions of section 5.
According to Section 7 of the Act, the Commission
will consist of 1 Chairperson and 4 members.


•Vision
To make the market competitive through
advocacy, engagement and enforcement of
the law resulting congenial business
environment.


•Mission
1.To prevent, control and eradicate collusion,
monopoly, oligopoly, or abuse of dominant position or
any other anti-competitive practices in the market as
well as to prevent and control any Combination which
will have adverse affect on Competition.
2.To establish Information and Communication
Technology (ICT) based knowledge intensive
organization with high competency.
Function of the Commission
1.To eliminate practices having adverse affect on
competition in the market, to promote and to sustain
competition and to ensure freedom of trade;
2.To inquire into, either on receipt of any complaint or
on its own initiative. All anti-competition agreements,
dominant position and practice of the enterprises;
3.To inquire into other offences specified under this
Act and to sue and conduct them accordingly;
4. To make rules, policy, instructions of notifications
or administrative directions relating to competition,
and to give advice and to assist the Government for
implementation thereof;
5. To take necessary plan of actions for developing
awareness among the people about the matters relating
to competition by way of dissemination, publication
and any other means;
6.To develop mass awareness by way of conducting
research, seminar, symposium, workshop and other
similar means about the anti-competition agreement
and activities and to publish and disseminate the result
of such research and to give recommendations to the
Government for their effective implementation.

7.To implement, follow or consider any matter relating
to competition sent by the Government;
8. To review the actions taken under any other law for
the consumer rights protection and implementation;

Homework
Homework 2
Group 1:
Group 2:
Written Assessment on Homework
(Marked? Or Un-marked?)
.
Thank you
Any Question? Comment?
Suggestion?
49

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North South University

Center of Excellence in Higher Education

School of Humanities and Social Sciences

Course: LLM 516

Dr. Md. Jakerul Abedin

Wednesday, June 14, 2023 4

8. Your Obligations: For details, see Course Outline

Wednesday, June 14, 2023 6

Research Topic Approval

Wednesday, June 14, 2023 7

General Discussions on the Subject

Wednesday, June 14, 2023 8

Categories of Instruments: Securities Laws,

Important Instruments : Ordinance, Act

Important Instruments : Ordinance, Act

 Competition Commission of India

Wednesday, June 14, 2023 13

Financial Institutions Division (FID)

 The Chairman acts as the Chief Executive of the

Bangladesh Securities and Exchange Commission was

Thus, the mission of the Commission is

Securities Laws, Rules, Regulations:

Financial Institutions Division (FID)

Wednesday, June 14, 2023 23

To be the leading exchange in the region and a key

The major functions are:

The major functions are:

Financial Institutions Division (FID)

Wednesday, June 14, 2023 34

The Chittagong Stock Exchange (CSE) began its journey in

Bangladesh is a developing country. To reach in the

Wednesday, June 14, 2023 37

To ensure the availability of products and services of

Wednesday, June 14, 2023 40

Wednesday, June 14, 2023 41

Wednesday, June 14, 2023 42

Wednesday, June 14, 2023 46

Wednesday, June 14, 2023 47

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