The chaos surrounding certain demands by a section of Bangladesh Securities and Exchange Commission (BSEC) officials and employees in early March was aimed at protecting stock looters and manipulators exposed in an ongoing investigation, according to initial BSEC findings.

The demonstration, which the BSEC described as chaos, paralysed regulatory activities for two days before subsiding and brought the top BSEC leadership and staff into direct confrontation.

The protesting officials demanded the resignation of the stock regulator's top leadership, while the BSEC chairman and three commissioners reiterated that their anti-graft measures would continue.

The BSEC sent its initial findings to the Financial Institutions Division (FID) of the Ministry of Finance last week, seeking an interministerial investigation.

On March 5, BSEC officials confined the chairman and three commissioners in the meeting room, demanding the reinstatement of a top official dismissed on graft charges.

"During a commission meeting chaired by the BSEC chairman, a group of unruly and defiant officials and employees forcibly entered the meeting room in a manner completely contrary to professional decorum," the BSEC said in the letter, referring to the incidents.

"Subsequently, they shut down electricity, closed-circuit television (CCTV) cameras, and other facilities, holding the commission hostage for nearly four hours, creating a situation of terror and chaos."

"They hurled abusive language at the chairman and commissioners, and at one point threw an AC remote at them," it added.

Besides, the initial findings accused the protesting officials of physically assaulting the chairman's private secretary and vandalising office at BSEC building in Agargaon area of Dhaka.

As the situation spiralled out of control, security personnel, along with members of the Bangladesh Army, intervened. They had to charge batons to rescue the top leadership and subsequently escorted them out of the BSEC premises.

"It is presumed that the unruly and defiant officials and employees, by engaging in such illegal activities, are siding with those involved in stock market scandals and looting, ultimately attempting to shield the perpetrators from legal accountability," the findings said.

As the root cause of the unrest, the BSEC noted that it had formed an investigation committee to probe corruption and irregularities that took place during the previous government.

Several reports from this committee identified individuals and institutions involved in stock market manipulation, including former BSEC chairmen, commissioners, and officials.

Subsequently, the commission decided to issue show-cause notices and demand explanations from those implicated. Based on the findings, some officials were served show-cause notices.

Due to serious irregularities, former executive director Saifur Rahman was forced to retire, the stock regulator said.

It added that the "unruly and defiant" officials and employees exerted immense pressure on the commission to revoke the retirement order of the former executive director.

They also engaged in office vandalism, demanding the withdrawal of show-cause notices and the rejection of the investigative committee's recommendations.

"To stop the BSEC's departmental actions, such violent acts are against professional ethics, unacceptable, and condemnable," the letter stated.

On March 6, the BSEC chairman's security staff filed a case against some officials with Sher-e-Bangla Nagar Police Station for vandalism and chaos.

On 9 March, the first trading day of the week, the stalemate showed signs of improvement.

The Daily Star approached BSEC staffers who had held a press briefing during the face-off to press home their demands. However, they declined to comment on the findings, saying they were unaware of them.

INTERMINISTERIAL PROBE RECOMMENDED

To establish a chain of command at the BSEC, both now and in the future, the incident should be thoroughly investigated, and appropriate recommendations should be made, said the BSEC.

For this purpose, the BSEC urged the formation of a high-level investigation committee led by the Financial Institutions Division, with representatives from the Ministry of Public Administration, Ministry of Home Affairs, Ministry of Law, and the Finance Division.

As the BSEC is classified as Critical Information Infrastructure (CII), it said that it would deploy armed security personnel such as Ansar at its building to avert any untoward situation in the future.

Strict legal action is necessary against those involved in acts of terrorism and sabotage, the regulator said, adding that collaboration with the Financial Institutions Division is required for structural reforms within the BSEC.

To avoid full dependence on BSEC officials, improve work quality, expedite tasks, and maintain confidentiality, 19 government officials may be appointed. These officials should have degrees in economics, finance, commerce, accounting, statistics, mathematics, law, or information technology.

The BSEC also sought an FID investigation into protests against the appointment of M Mashrur Riaz as BSEC chairman, which were organised by BSEC officials.

Training programmes for BSEC employees to promote professionalism are necessary, it said.

Besides, the BSEC sought security measures for the chairman and commissioners following the incident on 5 March.