The standoff between top leadership and staff at the Bangladesh Securities and Exchange Commission (BSEC) entered its second day yesterday, following protests triggered by the forced retirement of an executive director over graft allegations on Wednesday.

Protesting staff, demanding the resignation of BSEC Chairman Khondoker Rashed Maqsood and three commissioners for alleged inefficiency, brought regular activities at the commission to a halt.

Rebutting the resignation demands and other allegations, Maqsood told journalists yesterday that the commission would not bow to pressure.

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Arriving at the office yesterday afternoon under security escort, he said that actions against corruption would continue with government support.

While Maqsood was speaking to journalists, a large presence of law enforcers and army personnel was visible at the BSEC premises in Agargaon.

Protesting staff, observing a work abstention, gathered on a separate floor of the building.

The unrest began on Wednesday when staff locked the chairman inside his office after Executive Director Saifur Rahman was forced into retirement over graft charges.

Protesters cut power to the building for hours, prompting law enforcers to rescue the leadership and escort them out of BSEC premises.

Maqsood and the commissioners met with Finance Adviser Salehuddin Ahmed and Financial Institutions Division Secretary Nazma Mobarek yesterday.

Finance ministry sources said that they were instructed to take stringent action against corruption, with assurances of ministry support.

Later, at around 3pm, Maqsood entered the office with a security escort and announced that the government had greenlit his continuation in office to investigate corruption.

He claimed that those charged with corruption had an interest in obstructing the investigations.

In response to a question about whether officials were staging the protest to protect themselves due to their involvement in corruption, he said, "Those who are being charged with involvement in corruption have an interest in creating obstacles to the investigation."

Meanwhile, the DSE Brokers Association (DBA) and the Bangladesh Merchant Bankers Association urged the government to take swift action to resolve the ongoing crisis at the BSEC, saying prolonged protests would hurt investor confidence.

While speaking to journalists, the BSEC chairman said that the stock market regulator would not back down from its fact-finding and investigative activities and would take punitive action against corruption that occurred up to 2024.

"The government has ordered us to proceed firmly with what we are doing. We have already received seven investigation reports and charges have been framed in three of them. Once our enforcement actions are complete, the investigation reports will be available on the website."

When asked whether he intended to resign, the chairman responded that the government had tasked him with completing the investigations and identifying the main culprits.

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"We will not back down an inch. We will not bow to any illegal demands. What we are doing now, we will continue with full attention."

In response to a question about how the office would function if officials did not attend work, BSEC commissioner Farzana Lalarukh said, "We will urge them to return. We will continue to try and urge them to come back."

Meanwhile, the Dhaka Stock Exchange (DSE) closed on an upward trend yesterday, gaining seven points despite the ongoing stalemate at the BSEC. The DSE's turnover rose by 11 percent.

In the morning, the Bangladesh Securities and Exchange Commission Officers' Welfare Association held a press briefing at the BSEC's multipurpose hall in the capital.

Mollah Md Miraz-Us-Sunnah, member secretary of the association, read out a written statement.

Describing the chairman and commissioners as "inefficient", he said the top leadership lacks knowledge and practical experience of the stock market.

He also alleged that they had no genuine intention to improve the market.

The officials made "fair" demands, but instead of addressing them, the commission allowed law enforcement agencies and the army to beat them, he claimed.

The association alleged that the chairman and commissioners issued numerous verbal orders and threatened officials with show-cause notices if they refused to comply.

It also accused the BSEC chairman and commissioners of mistreating officials at all levels, calling them "thieves", "garment workers", and "foremen".

Citing a Prothom Alo report, the association said only 10 percent of respondents in a survey expressed confidence in the current BSEC leadership.

It claimed that the commission was delaying promotions and instead trying to bring in ministry officials on deputation for senior positions.

Although the chairman is permitted to raise Tk 3,000 and commissioners Tk 2,500 per month for hospitality, the chairman allegedly raised Tk 25,000 and the commissioners Tk 15,000 each month.

The association further alleged that the commission appointed independent directors at several listed firms without conducting fit-and-proper tests.

It also claimed that the commission formed an investigation committee that included controversial private-sector individuals who had previously faced punitive action from the BSEC.

The association added that officials were being harassed under the pretext of investigations.

"Including these individuals in the investigation committee is a conflict of interest," it said.

The association also alleged that the commission placed Executive Director Saifur Rahman on forced leave without government approval, arguing "the commission is not the government".

Although the commission promised to publish investigation reports, it did not do so. Instead, it issued notices to 15 officials recommending the highest level of punishment. Moreover, the show-cause notices were issued without any decision being taken at a commission meeting, it claimed.

According to securities regulations, the BSEC can fine issuers and market intermediaries found guilty of violations. However, it cannot bring allegations or issue show-cause notices, which the association argued was unlawful.

In light of the situation, the association demanded the immediate resignation of the chairman and commissioners and an apology to officials.

The BSEC chairman declined to comment on the allegations made by BSEC officials.

Regarding Saifur Rahman's forced leave, he said that all actions had been taken in accordance with rules and regulations.