The Bangladesh Securities and Exchange Commission (BSEC) has started the process of forming a Securities Market Shariah Advisory Council to ensure compliance with shariah law.
The stock market regulator issued a notification — titled “The Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Rules, 2022” — on September 29, which was posted on its website on Sunday.
The rules will apply to Islamic shariah-based securities (ISBS) and also to any matter related to the development of the Islamic capital market (ICM).
As per the notification, the council will provide advisory services to the BSEC, issuing pronouncements related to ISBS, or any matter related to the securities market.
The council will consist of nine members, comprising shariah scholars and experts. At least five members will be Shariah scholars while the remaining four will be experts.
The chairman of the advisory council will be elected by the council members from the five-member scholars.
The terms of reference for the appointment of the members will be defined by the BSEC from time to time, or in the letter of engagement. The members of the council will serve a maximum of two terms consecutively, and each term will be a maximum of three years.
The shariah scholar will have at least 10 years of professional experience, according to the notification.
Besides, each expert member of the council will have a post-graduation in any business discipline or Islamic finance or economics or law.
The expert member will have a basic understanding of shariah principles, preferably in Islamic banking, Islamic finance, or the securities market.
MS
