The Bangladesh Securities and Exchange Commission (BSEC) unveiled an “immediate action plan” late Tuesday, just as it suspended 21 of its officials over a high-profile internal crisis.

The dual announcements—one focused on reform and the other on punitive measures—are seen as an effort to stabilise investor sentiment in the wake of continued market turmoil and internal discord.

The regulator’s press statement outlines a series of long-recommended reforms aimed at restoring confidence in the capital market.

Among the key proposals are the offloading of shares by profitable state-run and multinational companies, new tax incentives to encourage private firms to go public, tighter controls on bank financing to the stock market, and an initiative to promote the capital market as a primary source of long-term financing.

These measures, while not new, are being repackaged and pushed forward amid growing urgency following a sharp drop in the Dhaka Stock Exchange’s broad index, the DSEX. The index fell below the 5,000 mark on April 24 and continued its slide, losing over 288 points or 5.53 percent in just 13 trading sessions through Wednesday.

Even after the action plan’s release, the market dipped 18 points more the next day, sparking street protests from disgruntled investors in Dhaka’s Motijheel area.

Behind the headlines of reform, however, lies a governance crisis that erupted within the BSEC on March 5. A group of employees held the chairman and commissioners hostage in protest of the forced retirement of an executive director, Md. Saifur Rahman.

In response, the commission has suspended 21 officials, with letters dated April 29 and distributed a day later. Fourteen of these officials are also accused in a criminal case filed at the Sher-e-Bangla Nagar Police Station.

A senior official from the Financial Institutions Division (FID) of the Ministry of Finance confirmed that the reform proposals originated from the BSEC and are now under government consideration.

The FID has already approached the National Board of Revenue (NBR) regarding the proposed tax incentives.