As the regulatory body of the Bangladesh capital market, the Bangladesh Securities and Exchange Commission (BSEC) has earned enough infamy. Instead of protecting the interests of investors, small investors to be more precise, it has served vested interest groups and at times is alleged to have colluded with quarters responsible for the scandalous market crash in 1996 and 2011. Investors have lost confidence in the stock market so much so that restoring their trust would be an uphill task. Ideally, companies should turn to the capital market instead of depending largely on banks for fund but a moribund stock market is no place for companies to raise large amounts of capital from individual investors inside and outside of the country. Both the stock market crashes have wrecked havoc on the uninitiated small investors who had been lured to earn easy money. 

As a statutory body BSEC should have become a crucial regulatory body long ago but the oversight role it was supposed to play has been missing right from the beginning. According to a report carried in this newspaper on Sunday, during the two tenures of the Bangladesh Nationalist Party (BNP) government between 1991-1995 and 2001-2006, the capital market did not face any financial turmoil. Now that the party has been back at the helm of state affairs, lobbying is going on for grabbing the top positions at this financial regulatory body, the report contends. Indeed, for the BSEC to perform its due role, it must have not only a competent team of commissioners headed by a chairman but also their integrity has to be immaculate. Sure enough, meritocracy plus integrity will be in great demand for the regulatory body to function neutrally and fairly. The ruling party's election agenda also made it clear that qualified people will be appointed at the regulatory body for reviving the capital market. 

So, the government has an obligation to live up to its pledge it made in order to ensure proper functioning by the BSEC. To that end, it has to make extensive homework and assessment before appointing individuals to key positions at this regulatory body. Without restoring buoyancy and competition for investment in the capital market, the overall economy cannot find itself on a higher trajectory. Even the export dynamism is a reflection of how the manufacturing industry performs and how the companies are rated in terms of their market penetration. Even if the regulatory body gets its job done well, the market may be sluggish but at no point there is a chance for a crash as suffered on two previous occasions. 

At a time of digital fraud and cyber hacking, new challenges have emerged before the capital market. These challenges have to be met efficiently. In that case, the regulatory body has to develop its information and technology to match the challenges. Involved here are interests of both small and big investors. In this respect, auditing proves a vital tool for allowing companies to float shares in the market. No company should be given any leeway to deceive small investors. It has happened twice and must not happen for the third time.