Bangladesh : BSEC prioritizes the formation of a clearning corporation.
A committee of the securities regulator recommended formation of a Clearing Corporation like a demutualised organisation, a majority number of independent directors in its board for the sake of ensuring transparency and accountability.
The Bangladesh Securities and Exchange Commission (BSEC) is working to formulate the rules on formation of the Clearing Corporation by reviewing recommendations made by the committee.
A Clearing Corporation is an institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.
The clearing and settlement department of the bourses are performing the job of settlement of daily transaction in the capital markets.
Arif Khan, a commissioner of the securities regulator, said that the regulator gave the priority to the formulation on venture capital and equity finance and Clearing Corporation.
Khan said "the structure of Clearing Corporation will be as like demutualised organisation where the board will include majority number of independent directors including the chairman."
The BSEC seeks public opinion on draft rules of venture capital and equity finance.
Khan said "the rules on establishing Clearing Corporation will also be finalised by June this year. The regulator will seek technical assistance from Asian Development Bank (ADB) for introducing the Clearing Corporation."
Most of the demutualised exchanges of other countries separate Clearing Corporation.
The committee of the securities regulator submitted its report on as to how the Clearing Corporation can be established.
The ownership of the corporation will be limited among the institutes such as stock exchanges, banks and financial institutes.
The ownership of the Clearing Corporation will be separated from the management due to structure of demutualised organization.
The country's both the demutualised exchanges have to form their 13-member boards by appointing 7 independent directors including the chairman.
2015 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Date:||Feb 18, 2015|
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