Bangladesh Securities and Exchange Commission to Establish Shariah Council to Accommodate Shariah-based Investors

The Bangladesh Securities and Exchange Commission (BSEC) is set to establish a Shariah council in conformity with a new regulation designed for the purpose of accommodating more Shariah-based investors and enhancing the quantity of Shariah-based securities in Bangladesh's market

Why it Matters?

In the past five years, Bangladesh’s stock market has seen the issuance of new Shariah-based products such Sukuk, perpetual Mudaraba bonds, and Shariah-compliant mutual funds. Any disagreement or issue developing in the management of these securities, however, could not be settled because there is no central Shariah council. The BSEC has created a new regulation as a result. According to Rezaul Karim, BSEC's Executive Director and spokesperson, there is a...