TA-8994 BAN: Third Capital Market Development Program

The project aims to: (i) meet the capacity building needs of the Bangladesh Securities and Exchange Commission (BSEC) and the Insurance Development and Regulatory Authority (IDRA) to help both regulators discharge their oversight functions more effectively; (ii) strengthen the BSEC and IDRA for implementing reforms under the third capital market program; and (iii) support the government to carry out all policy conditions under the third capital market program.

Objective 1: Development of the capital market surveillance and supervision framework

• Framework design of the surveillance and supervision system.

• Stakeholder consultation before finalizing the surveillance and supervision system

Objective 2: To monitor and supervise installation and operationalization of the new ICT system of BSEC

• Hardware and software specification of the new ICT system

• Tender documents for procuring the software and hardware for the new ICT system

• New ICT system installed and operationalized

Objective 3: Business process re-engineering of the capital market regulatory agencies

• Diagnosis report on the existing business process and regulatory framework

• Re-engineering of the business process of the capital market on basis of the new ICT system

Objective 4: To propose a Clearing and Settlement company based on international best practices

• Regulatory framework for the proposed Clearing and Settlement regime

• Proposed structure and management of national settlement guarantee fund

• Linkage between the proposed C&S company and CDBL

• Framework of the proposed C&S company including organizational structure, staffing, and operating parameters

• Draft BSEC guideline for granting a license to establish a clearing and settlement company

Objective 5: To draft Sukuk (Islamic bond) rules based on international best practice

• Developing an appropriate regulatory and procedural framework for Sukuk

Objective 6: To draft rules for derivatives based on international best practice

• Drafting regulatory and procedural framework for derivative

Objective 7: To provide training to additional IDRA staff to be mobilized after approval of the IDRA organogram

• Training and capacity building support to IDRA official