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Bangladesh

Bangladesh: Capital markets regulator appoints new chairman

  • Shibli Rubayat Ul Islam, a business school professor and corporate leader, joined on 17 May 2020

  • His appointment meets the quorum requirement for the regulatory meeting necessary to start the capital markets

  • He appears to be an action-oriented leader; introducing bond market and policy reforms seems to be his top priority

Shopnil Paul
Shopnil Paul

Research Associate

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IDLC Securities
18 May 2020
Published byIDLC Securities

According to reports, Shibli Rubayat Ul Islam, a professor of the Banking and Insurance Department under the Faculty of Business Studies in the University of Dhaka, has been appointed the chairman of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market of Bangladesh. Before joining BSEC, Professor Islam led Sadharan Bima Corporation (SBC), the state-owned non-life reinsurer of the country. He succeeds Dr M. Khairul Hossainthe longest-serving chair of the commission, whose 9-year long tenure ended on 14 May 2020. 

We believe Islam's appointment as the BSEC chairman is important for two reasons. First, the BSEC has been going through a transition period when two of the BSEC commissioners and the ex-BSEC chairman expired their tenure in the past one month. Because of the quorum requirement, BSEC could not hold commission meetings, which was a necessary step to start the stock exchanges closed since 25 March 2020. Islam’s appointment is reassuring in this context as we expect the exchanges to start in June after the Eid-ul-Fitr holidays or at the earliest time.

Second, as a reflection on his past initiatives, we expect the new chairman to take a firm stance in technology and product development and policy reforms. He affirmed our views in his recent interview with a hint that his focus would be on introducing debt instruments, Islamic securities and alternative funds in Bangladesh, which has been primarily an equity market so far. He also suggested implementing reform initiatives for sustainable capital market development.

Islam comes from a Dhaka-based affluent family. His father was the chairman of a first-generation bank and his mother was a prominent singer. Graduating from the University of Dhaka in the late 1980s, he pursued the career in academia. Eventually, he became the Chairman of the Banking and Insurance Department and the Dean of the Faculty of Business Studies, a prominent business school in Bangladesh. During his tenure as the Dean, Islam brought a significant transformation to the school. He contributed to the infrastructural and technological development of the university, collaborated with reputed international business schools and introduced fresh courses for professionals. He also sits in their governing committees of various educational institutions.

Apart from his achievements in academic life, he has shown his excellence in leadership roles in corporations and industries. Besides his position as the Chairman of SBC, his roles also include important positions in export-oriented companies and the international chamber for trade and commerce.