Document Type

Journal Article


Compares the approach to disclosure-based regulation of securities markets in Bangladesh with that of India and Malaysia. Describes the present administration of the disclosure regime in Bangladesh, which is split between the Registrar of Joint Stock Companies (RJSC) and the Securities and Exchange Commission (SEC); this mirrors the two sets of laws involved, company law and securities law respectively. Outlines the basic regulatory functions of securities law enforcement: the ability of investors to seek remedies against the infringements of disclosure requirements and the efficiency of the SEC in dispensing justice, and finds that both are weak in Bangladesh. Suggests that more effective regulation in Bangladesh is necessary and that the SEC should be free from government and other interference. Argues that preventive measures should for this reason be the preferred policy; these include investor education and regulatory verification before prospectus issue.