In a move towards developing Shariah-based capital market Bangladesh Securities and Exchange Commission (BSEC) has formed a nine-member council to advise it on this subject. The decision came on Monday at the market regulator's 848th meeting, Rezaul Karim, executive director and spokesperson of BSEC.
"Through the formation of Shariah Advisory Council, the opportunity to bring Islamic Shariah-based securities to the capital market of Bangladesh will be strengthened," he said. He said domestic and foreign investors interested in Shariah-based securities will be more interested in investing in the capital market. The advisory council has been set up under rules of 'Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Act-2022.
The council will advise the BSEC on the formation of Islamic Capital Market including different types of Islamic Shariah-based securities issues. For example, formulation of Shariah-related guidelines, formulation of standards for Islamic Shariah-compliant securities, whether any securities are Shariah-compliant or not, this council will give opinions according to the needs of the commission.
There will be 5 Shariah scholars and 4 experts as members of the Commission's Shariah Advisory Council. In light of this principle, the BSEC decided to make Professor Dr. Mohammad Abdur Rashid the chairman of the council. The selected 5 members of Sharia scholars are - Professor Dr. Mohammad Abdur Rashid, Mufti Shahid Rahmani, Mufti Yusuf Sultan, Mufti Dr. Waliur Rahman Khan (Representative of Islamic Foundation), and Maulana Shah Wali Ullah.
On the other hand, 4 expert members are - Finance and Banking Expert Prof. Abu Taleb, Legal Expert AKM Nurul Fazal Bulbul, Accounting Expert Prof. Md. Nazim Uddin Bhuiyan, and Capital Market Expert Mejbah Uddin Ahmed. As per the rules, the BSEC will nominate the members of the Council. And the chairman will be elected by the vote of the council's Shariah betta (Shariah knowledge experts).
The tenure of the members, including the chairman of the council will be 3 years. A member may be nominated for two consecutive terms. However, BSEC can re-nominate any person as a member of the Council after two terms with a gap of one term.
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