Financial revenues of BSEC surge by 50%, reaching Tk26 crore in the fiscal year 24.

The Bangladesh Securities and Exchange Commission (BSEC) has released its annual financial report for the fiscal year 2023-24, revealing a significant increase in net earnings and outlining priorities to develop the capital market.

According to the report, published on 12 August 2023, the total assets of BSEC amounted to Tk440 crore by the end of June 2024. The total income for the same fiscal year rose by 9% year-on-year to Tk122.60 crore. After covering expenses, BSEC's net earnings stood at Tk26.06 crore, marking a 50% year-on-year increase.

The Chairman of BSEC, Khondoker Rashed Maqsood, emphasised the importance of capital market development for Bangladesh's economy, especially during times of crisis. He acknowledged that FY24 was marked by declining daily turnover and instability in the market.

Maqsood stated that the BSEC has taken steps to make the capital market the primary source of long-term financing and a reliable investment avenue. To achieve this, the BSEC has implemented regulatory measures focused on enhancing risk management, corporate governance, and strategic planning in financial institutions. These measures include proportional, business model-tailored applications of EU directives related to supervisory powers, sanctions, and ESG risk considerations.

To restore investor confidence and ensure an effective role for the capital market in supplying long-term capital, Maqsood outlined priorities such as coordinating with other financial regulators, upgrading market structure and management to international standards, ensuring institutional governance through automation, strengthening monitoring mechanisms, and enhancing and utilising human resources effectively.

However, Maqsood did not specify the timeline for the implementation of these priorities. He also did not provide details on the steps already taken by the BSEC to make the capital market the primary source of long-term financing or mention any new revenue sources for BSEC.

The Chairman of BSEC, Khondoker Rashed Maqsood, made this statement in the report. The BSEC's main revenue sources include registration fees, annual and renewal fees, approval and application charges, fines and penalties, BO account maintenance fees, and interest income from deposits.

The report also stated that despite Bangladesh's rapid economic expansion in recent decades, the capital market has not grown at the same pace. Maqsood did not mention specific targets for the growth of the capital market in the near future.

Despite the challenges, Maqsood expressed the BSEC's commitment to undertaking necessary reforms to build a more modern, resilient, and investor-friendly capital market. The report does not provide an update on the total assets of BSEC after FY24, as no such statement was made by the chairman.