& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

SEC drafts rules on stock advisory services

Sarwar A Chowdhury
Investors will now be able to take advice from professionals on how to invest wisely in the stockmarket.
The Securities and Exchange Commission (SCE) has drafted two new rules on “investment advisory services" and “equity research” in an effort to develop a rumour-free market and to help investors reduce risks.
With these rules, investment advisory services are going to be allowed, while research firms will be able to publish and sell equity research to investors on a commercial basis, which was prohibited earlier.
After approving the draft rules at a meeting last week, the stockmarket regulator sought public opinion to finalise the rules.
"It is commonly believed that there are thousands of investors in Bangladesh who have inadequate knowledge about the stockmarket and invest in the market influenced by rumours," said an SEC official.
If investors follow the suggestions, their investment risks will reduce, he said. “The rules on research will compel the institutions and brokerage houses to appoint professional, efficient and experienced investment managers."
The rule on investment advisory services will be titled 'Securities and Exchange Commission (Investment Adviser) Rules, 2012'. In line with the rules, no individual or institution will be allowed to provide investment advices without having a licence from the SEC.
An individual seeking to become an investment adviser must be 30 years of age and should have relevant academic or professional qualification.
In addition, he or she must have at least five years of experience in the securities market, including three years as a portfolio manager.
An institution seeking an advisory licence from the SEC must have Tk 25 lakh in paid-up capital and net worth should be equivalent to half the paid-up capital for all time.
Investment advisers will provide research- and material informationbased advice to their clients on a contract basis. Advisers should not give any rumour-driven advice.
An adviser can take responsibility of an investor, but before that, the adviser should assess the client's investment related conditions, objects and experience.
An adviser will not share or disclose a client's portfolio information to others.
The second rule will be styled as 'Securities and Exchange Commission (Research Analysis) Rules, 2012'.
In line with the rule, merchant banks, stockbrokers, stock dealers, asset management companies and independent research firms will be eligible institutions to publish research reports on listed securities.
But the institutions must have a separate research team comprising at least three members, including a head
of research.
Any person seeking to become a research analyst must have relevant academic or professional qualification.
Besides, the analyst must have at least three years of experience in the capital market or any related financial organisation, while the head of research must have five years of experience.
The research staff must exercise diligence, independence and thoroughness in analysing securities and making investment recommendations. They must have reasonable and adequate basis supported by appropriate research and investigation, for any investment analysis, recommendation or action.
sarwar@thedailystar.net