TA-8228 BAN: Enhancing Efficiency Of The Capital Market

The TA was to support BSEC’s own efforts to enhance its capacity and capabilities in the area of enforcement, as well as its efforts to establish a specialized adjudicatory body to hear and rule in capital markets cases. It was also to support the government’s efforts to make changes in the ownership and governance structure of the two stock exchanges in support of enhanced governance and management of the exchanges.

Description of actual services provided by the staff within the assignment:

• Task -1: Strengthened enforcement capacity of SEC

  • Developed an effective structure for the SEC’s enforcement activities (that includes organizing a sustainable program to follow up on customer complaints and termination for cause of members of the stock exchanges);

  • Developed internal guidelines and procedures for investigation and enforcement (that includes establishing a cause investigation program and training SEC officials in performing this function);

  • Assisted SEC in conducting audit and inspection of the stock exchanges and member brokers of the stock exchanges;

  • Provided on-the-job training to SEC officials in the conduct of audit and inspection of the operations of stock exchange members and other market participants; and

  • Trained investigation and enforcement staff (which includes training SEC staff in conducting investigation and preparing securities cases for prosecution).

  Task -2: Expedited adjudication of enforcement actions

  • Developed a model organizational framework for expedited adjudication;

  • Drafted the required legislative and procedural framework;

  • Consulted with industry stakeholders;

  • Assisted and advised on the process of enacting the legislation and/or issuing the relevant regulations;

  • Operationalized the special tribunal; and

  • Trained judges to handle securities cases in a competent and expedient manner.

  Task – 3: Improved regulation, governance and operation of stock exchanges

  • Developed appropriate governance structures in the CSE and DSE;

  • Drafted the required legislative and procedural framework;

  • Consulted with industry stakeholders;

  • Assist and advised on the process of enacting the legislation and/or issuing the relevant regulations