FE Report (November 21, 2010)
The establishment ministry has approved recruitment of 49 officials for the understaffed Securities and Exchange Commission (SEC) aiming to strengthen the monitoring capacity of the market watchdog.
The number, however, is much lower than the SEC's proposal to raise its staff to 318 in two phases over a period of five years from 115 currently employed in 19 categories.
"The establishment ministry will now send it to the finance ministry and other departments of the government to complete the formalities," said an official of the ministry.
The stock market grew manifolds over the years, but the staff strength did not keep up with the pace, causing a backlog of tasks, the letter mentioned.
"It has become very tough to finish the job smoothly with the existing number of staff. However, recruitment approval will reduce the stress faced by the commission," said an SEC official.
Under the SEC's proposal, posts of executive directors are required to be raised to nine from the existing seven, directors to 15 from nine, deputy directors to 31 from 16, assistant directors to 35 from 15, personal officers to 29 from 21 and car drivers to 22 from 14.
Established in 1993, the SEC itself could meet 78.27 per cent of its total annual expenditure in 2004, 80.65 per cent in 2005, 80.65 per cent in 2006 and in 2007, and 100 per cent in 2008.
The income of the SEC from penalties slapped on rogue companies and brokerages has increased. If the proposed number of staff is appointed, it cost an additional Tk 16 million. The commission is able to defray its own expenses.
Dhaka Stock Exchange (DSE) market capitalisation rose to Tk 3371.00 billion, an increase of 4877.11 per cent over Tk 67.73 billion in the last 14 years. Chittagong Stock Exchange market cap increased to 12,307.0 per cent to Tk 1,823.87 billion in the same period.
Beneficiary Owner's account jumped 374.55 per cent to 3118267 recorded in October , 2010 from 657,086 in 2005.
"The commission is facing serious problem in examining annual and half-yearly reports of hundreds of listed companies in due time because of the existing shortage of staff," said another official of the SEC. But it is necessary to accomplish the task in time for the sake of the market and investors, he added.
Currently, DSE has 442 listed companies and debentures and CSE has 222. More than 30 merchant banks and 12 asset management companies are currently operating in the market.
Number of stockbrokers in DSE increased to 238 in 2010 from 195 in 1996 while in CSE, the number of stockbrokers to 143 in 2010 from 71 in 1996. Around 600 branch offices of brokerage houses are also operating across the country.
The establishment ministry has approved recruitment of 49 officials for the understaffed Securities and Exchange Commission (SEC) aiming to strengthen the monitoring capacity of the market watchdog.
The number, however, is much lower than the SEC's proposal to raise its staff to 318 in two phases over a period of five years from 115 currently employed in 19 categories.
"The establishment ministry will now send it to the finance ministry and other departments of the government to complete the formalities," said an official of the ministry.
The stock market grew manifolds over the years, but the staff strength did not keep up with the pace, causing a backlog of tasks, the letter mentioned.
"It has become very tough to finish the job smoothly with the existing number of staff. However, recruitment approval will reduce the stress faced by the commission," said an SEC official.
Under the SEC's proposal, posts of executive directors are required to be raised to nine from the existing seven, directors to 15 from nine, deputy directors to 31 from 16, assistant directors to 35 from 15, personal officers to 29 from 21 and car drivers to 22 from 14.
Established in 1993, the SEC itself could meet 78.27 per cent of its total annual expenditure in 2004, 80.65 per cent in 2005, 80.65 per cent in 2006 and in 2007, and 100 per cent in 2008.
The income of the SEC from penalties slapped on rogue companies and brokerages has increased. If the proposed number of staff is appointed, it cost an additional Tk 16 million. The commission is able to defray its own expenses.
Dhaka Stock Exchange (DSE) market capitalisation rose to Tk 3371.00 billion, an increase of 4877.11 per cent over Tk 67.73 billion in the last 14 years. Chittagong Stock Exchange market cap increased to 12,307.0 per cent to Tk 1,823.87 billion in the same period.
Beneficiary Owner's account jumped 374.55 per cent to 3118267 recorded in October , 2010 from 657,086 in 2005.
"The commission is facing serious problem in examining annual and half-yearly reports of hundreds of listed companies in due time because of the existing shortage of staff," said another official of the SEC. But it is necessary to accomplish the task in time for the sake of the market and investors, he added.
Currently, DSE has 442 listed companies and debentures and CSE has 222. More than 30 merchant banks and 12 asset management companies are currently operating in the market.
Number of stockbrokers in DSE increased to 238 in 2010 from 195 in 1996 while in CSE, the number of stockbrokers to 143 in 2010 from 71 in 1996. Around 600 branch offices of brokerage houses are also operating across the country.
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